Special City Council Meeting

CITY OF CRESCENT CITY Mayor Isaiah Wright Mayor Pro Tem Blake Inscore Council Member Raymond Altman Council Member Jason Greenough Council Member Kelly Schellong AGENDA SPECIAL CITY COUNCIL MEETING WASTEWATER TREATMENT PLANT CONFERENCE ROOM 210 BATTERY STREET CRESCENT CITY, CA 95531 MONDAY OCTOBER 30, 2023 6:30 P.M. This meeting will be held in person at the location listed above. The City will provide alternative methods of participation for the convenience of the public. The City does not, however, guarantee that there will not be technological issues or interruptions. The public is hereby notified that if there is a technological issue with Zoom or YouTube, the meeting will continue in person as scheduled. The public may access and participate in the public meeting using one or more of the following methods: 1) The meeting will be streamed via Zoom (details below). The direct Zoom link will also be posted on the City of Crescent City website (www.crescentcity.org). During the meeting, public comment may be made by using the raise hand feature on Zoom; ZOOM PHONE NUMBER: 1 (253) 215-8782 ZOOM WEBINAR ID: 819 5080 8403 MUTE / UNMUTE PRESS *6 RAISE HAND PRESS *9 2) The meeting will also be streamed on YouTube (channel: City of Crescent City, California), public comment may be made by calling in to the meeting using the Zoom phone number; 3) Public comments may also be made in advance by submitting written comment via publiccomment@crescentcity.org or by filing it with the City Clerk at 377 J Street, Crescent City, California, 95531. All public comments (via email or mail) must be received by the City Clerk prior to 12:00 p.m. the day of the meeting. Please identify the meeting date and agenda item to which your comment pertains in the subject line. Public comments so received will be forwarded to the City Council and posted on the website next to the agenda. Written public comments will not be read aloud during the meeting. Notice regarding Americans with Disabilities Act: In compliance with the Americans with Disabilities Act, if you need special assistance to participate in the meeting, please contact the City Clerk’s office at (707)464-7483, ext. 223. Notification 48 hours before the meeting will enable the City to make reasonable arrangements to ensure accessibility to this meeting [28 CFR 35.102- 35.104 ADA Title II]. For TTYDD use for speech and hearing impaired, please dial 711. A full agenda packet may be reviewed at City Hall, 377 J Street, Crescent City, CA or on our website: www.crescentcity.org OPEN SESSION Call to order Roll call Pledge of Allegiance 1|Page 10/30/23 COUNCIL AGENDA CONSENT CALENDAR 1. Purchase of Two F-450 Utility Trucks • Recommendation: Approve the purchase of two F-450 Public Works utility trucks with utility beds and cranes and authorize the City Manager to sign all documents necessary for the purchase and transfer of the vehicles 2. Budget Amendment to 20-CDBG-12012 Family Resource Center Food Pantry Services Subrecipient and Grant Agreement • Recommendation: Approve and authorize the City Manager to execute a contract amendment between the City of Crescent City and the California Department of Housing and Community Development for grant number 20-CDBG-12012 to transfer the remaining general administration funds to the project budget • Approve and authorize the City Manager to execute, contingent upon execution of the amendment to the HCD grant agreement, Amendment No. 2 to the Subrecipient Agreement between the City of Crescent City and the Family Resource Center of the Redwoods for Food Pantry Services to increase the project budget NEW BUSINESS 3. Award of LMIHAF Dollars as a Loan for Affordable Housing Project • Recommendation: Hear staff report • Technical questions from the Council • Receive public comment • Further Council discussion • Approve the award of a $300,000 loan from the Low – and Moderate-Income Housing Fund to GreenShoots Communities, LLC/GS Valhalla, LP as detailed in the draft award letter and authorize the City Manager to sign said award letter CITY COUNCIL ITEMS ➢ Legislative Matters – Consider miscellaneous legislative matters pertinent to the City of Crescent City. Authorize the Mayor to sign the appropriate letters and/or positions with respect to such matters. ➢ City Manager Report and City Council Directives – Pursuant to Crescent City Municipal Code § 2.08.200, the City Council may instruct the city manager on matters of importance to the administrative services of the City and provide direction with respect to subordinates of the City Manager. (Directives from individual Council Members that are not objected to by any member present shall be considered an order of the City Council.) ADJOURNMENT Adjourn to the regular meeting of the City Council of the City of Crescent City on Monday, November 6, 2023, at 6:00 p.m. at the Flynn Center, 981 H Street, Crescent City, CA 95531. POSTED: October 27, 2023 /s/ Robin Altman City Clerk/Administrative Analyst 2|Page 10/30/23 COUNCIL AGENDA  Vision: The City of Crescent City will continue to stand the test of time and promote quality of life and community pride for our residents, businesses and visitors through leadership, diversity, and teamwork. Mission: The purpose of our city is to promote a high quality of life, leadership and services to the residents, businesses, and visitors we serve. The City is dedicated to providing the most efficient, innovative and economically sound municipal services building on our diverse history, culture and unique natural resources. Values: Accountability Honesty & Integrity Excellent Customer Service Effective & Active Communication Teamwork Fiscally Responsible 3|Page 10/30/23 COUNCIL AGENDA  CITY COUNCIL AGENDA REPORT TO: MAYOR WRIGHT AND MEMBERS OF THE CITY COUNCIL FROM: ERIC WIER, CITY MANAGER BY: DAVID YEAGER, PUBLIC WORKS DIRECTOR DATE: OCTOBER 30, 2023 SUBJECT: PURCHASE OF TWO F-450 UTILITY TRUCKS ______________________________________________________________________ RECOMMENDATION • Approve the purchase of two F-450 public works utility trucks with Utility Beds and Cranes and authorize the City Manager to sign all documents necessary for the purchase and transfer of the vehicles. BACKGROUND Two new utility work vehicles were budgeted for FY 23-24 to upgrade the City’s vehicle fleet. These vehicles will be considered high use vehicles and key working tools for the Public Works staff. This will allow one older service truck (#10), a 1999 F-450 with a non- functioning crane, to be sold, and the other 2003 F-450 (#1) with functioning crane to be made available to the Equipment Mechanical Operation Technicians for pump support at the lift stations. ITEM ANALYSIS Corning Ford provided the lowest quote for the two Ford F-450 pickup trucks with custom utility beds, work bench, lighting, and a crane with winch. These vehicles include the following options. Ford F-450 4x2 Pickup • 7.3L 2V DEVCT NA PFI V-8 Gasoline Engine • 10 speed Automatic transmission • Trailer tow package • 120v/400w outlet • Scelzi Service Utility Bed • 60” tall utility boxes, 24” rear work deck • Autocrane EHC-3 with remote • Auxiliary battery system for crane 1  PURCHASE OF 2 F-450 UTILITY TRUCKS 2 OCTOBER 30, 2023 • OSHA required safety features for crane • Adjustable pole lights • 17” Steel Wheels with P225/70R19.5 tires • Full size spare tire • Spray-in Bedliner The procurement of these two F-450 utility pickups was completed by receiving three bids based on the City provided RFP which included specifications for the truck as well as the utility bed and crane package. Corning Ford was the low bidder for the assembled vehicle as well as including delivery, state fees, and sales taxes. FISCAL ANALYSIS The budget has already been allocated from the four contributing funds to the vehicle fund. The quote falls within the available budget. General General Vehicle Budget Fund Fund Sewer Water (Streets) (Parks) F-450 Utility Truck 1 $120,000 $18,000 $6,000 $24,000 $72,000 F-450 Utility Truck 2 $120,000 $18,000 $6,000 $24,000 $72,000 Vehicle Fund Total $240,000 $36,000 $12,000 $48,000 $144,000 The purchase price from Corning Ford is $119,748.93 per truck, for a total of $239,497.86. The quote is $502.14 under budget. This price includes all handling and shuttling of the vehicles to have their beds constructed in Fresno. The price also includes delivery to the City of Crescent City. The trucks are due to be available November 13th in Ohio, with a month for delivery to Corning. The cranes should be available in mid-December. Allowing for three months for fabrication makes the delivery to the City around the 1st of April 2024. The quote does not include the cost of DMV registration, which will occur after the trucks are received in April. A budget adjustment to cover the registration costs (currently estimated at $1450 per vehicle) will either be covered by unused budget within the Equipment Fund if possible, or in the mid-year budget update if necessary. STRATEGIC PLAN ASSESSMENT GOAL 1: SUPPORT QUALITY SERVICES, COMMUNITY SAFETY, AND HEALTH TO ENHANCE THE QUALITY OF LIFE AND EXPERIOIENCE OF OUR RESIDENTS AND VISITORS C. Empower and utilize Police, Fire, and Public Works departments to make Crescent City of the of the safest cities in the United States GOAL 3: OBTAIN THE HIGHEST LEVELS OF ORGANIZATIONAL EXCELLENCE  PURCHASE OF 2 F-450 UTILITY TRUCKS 3 OCTOBER 30, 2023 B. Maintain responsible fiscal management and accountability. C. Maximize performance and value in all City Council, staff, volunteer, and committee positions. D. Seek methods to create efficiencies and add additional value without compromising safety and performance. ATTACHMENTS 1. Quotations from Corning Ford, Harper Motors, and Future Ford of Sacramento  CITY COUNCIL AGENDA REPORT TO: MAYOR WRIGHT AND MEMBERS OF THE CITY COUNCIL FROM: ERIC WIER, CITY MANAGER BY: BRIDGET LACEY, GRANTS AND ECONOMIC DEVELOPMENT COORDINATOR DATE: OCTOBER 30, 2023 SUBJECT: BUDGET AMENDMENT TO 20-CDBG-12012 FAMILY RESOURCE CENTER FOOD PANTRY SERVICES SUBRECIPIENT AND GRANT AGREEMENT ______________________________________________________________________ RECOMMENDATION • Approve and authorize the City Manager to execute a contract amendment between the City of Crescent City and the California Department of Housing and Community Development for grant number 20-CDBG-12012 to transfer the remaining general administration funds to the project budget. • Approve and authorize the City Manager to execute, contingent upon execution of the amendment to the HCD grant agreement, Amendment No. 2 to the Subrecipient Agreement between the City of Crescent City and the Family Resource Center of the Redwoods for Food Pantry Services to increase the project budget. BACKGROUND The Department of Housing and Community Development (HCD) administers the Community Development Block Grant (CDBG) program for non-entitlement jurisdictions in California. (Cities with populations less than 50,000 and Counties with populations less than 200,000 are considered non-entitlement areas, meaning they do not apply for CDBG funding directly from the Federal government but rather apply to the State.) This program provides grant funding for programs associated with economic development and services to low-income individuals and families. On January 27, 2021, the City was awarded $500,000 in 2020 CDBG funding to operate a food bank. The Family Resource Center of the Redwoods (FRC) was selected as the City’s subrecipient to run the Pacific Pantry with $465,000 in grant funding allocated towards project services and $35,000 allocated to general administrative services. All funding under this grant must be expended prior to the January 26, 2024 grant deadline. 2  FOOD PANTRY AGREEMENTS 2 OCTOBER 30, 2023 ANALYSIS The current grant balance for this activity is as follows: Food Pantry grant expenditure period: 1/27/21 – 1/26/24 Program balance $38,712.88 General Admin balance $19,632.71 With only a few months remaining in the grant performance period, City staff does not anticipate being able to spend down the remaining General Admin balance and would like to move the remaining portion to the program budget so that it can be used to supplement the program for items such as holiday food boxes, rather than having to return the remaining funds to the State. City staff has received confirmation from HCD that we can move forward with a contract amendment to the Grant Agreement for the proposed changes and that it could be finalized, once submitted, in as early as a week. The proposed amendment is as follows: Existing Budget Program $465,000 General Admin $35,000 Proposed Budget Program $484,632 General Admin $15,368 FISCAL ANALYSIS Amending the subrecipient agreement with the FRC will increase the program funds available for the FRC but is not expected to have a fiscal impact to the City due to the fact that the general administration funds that will be transferred to the program are not projected to be expended by the deadline. STRATEGIC PLAN ANALYSIS This report is consistent with the following Strategic Plan Goals: • Goal 1: Support quality services, community safety, and health to enhance the quality of life and experience of our residents and visitors • Goal 1(A): Enhance collaboration with other agencies and the community to better aid the public • Goal 2(D): Collaborate with other jurisdictions and non-profits to maximize regional effectiveness and amplify funding opportunities • Goal 2(F)(9): Expand on the success of grant funding by maximizing utilization of opportunities with corresponding community needs • Goal 3: Maintain responsible fiscal management and accountability ATTACHMENTS 1. FRC Pantry Subrecipient Agreement Amendment No. 2  CITY COUNCIL AGENDA REPORT TO: MAYOR WRIGHT AND MEMBERS OF THE CITY COUNCIL FROM: ERIC WIER, CITY MANAGER BY: MARTHA D. RICE, CITY ATTORNEY DATE: OCTOBER 30, 2023 SUBJECT: AWARD OF LMIHAF DOLLARS AS A LOAN FOR AFFORDABLE HOUSING PROJECT ______________________________________________________________________ RECOMMENDATION • Hear staff report • Technical questions from Council • Receive public comment • Council discussion • Approve the award of a $300,000 loan from the Low- and Moderate-Income Housing Fund to GreenShoots Communities, LLC / GS Valhalla, LP as detailed in the draft award letter and authorize the City Manager to sign said award letter BACKGROUND The Crescent City Redevelopment Agency (RDA) was dissolved in 2012 along with all other redevelopment agencies in the State by way of legislation. One of the responsibilities of the RDA was to assist with the development and preservation of low- and moderate-income housing through the use of housing set aside funds (20% of redevelopment tax revenue is put into housing set aside). Part of the RDA dissolution process was to transfer various assets and statutory responsibilities of the RDA to other entities. Housing assets and affordable housing functions could be transferred to cities, housing authorities, etc. The City of Crescent City elected to retain RDA’s housing assets and affordable housing functions (Resolution No. 2012-04). Thus, the City of Crescent City is the Housing Successor Agency to the RDA. Housing set aside funds are slowly accumulating as a result of the wind up of the RDA and revenues that continue to trickle in. This “housing set aside” portion of revenue is required to be held in a segregated low- and moderate- income housing fund (LMIHF), which may only be used toward the development or preservation of affordable housing. 3  LMIHF LOAN – VALHALLA TOWNHOMES 2 OCTOBER 30, 2023 Earlier this year in the Spring, the City issued an RFP for use of non-competitive Permanent Local Housing Allocation Program (PLHA) funds. The City received two responses from viable affordable housing projects. Unfortunately, the City was subsequently notified that it would not receive the PLHA funds after all due to the City’s Housing Element not being in substantial compliance. Therefore, no PLHA funds were awarded to either project. At this point, City staff began discussing the possibility of utilizing LMIHF dollars in place of the PLHA funds. A Notice of Funding Availability for LMIHF was developed, reviewed and advertised. At the close of the application period, the City received two applications. One was deemed incomplete and the other was reviewed and scored by staff. ANALYSIS GreenShoots Communities, LLC / GS Valhalla, LP (“Applicant”) submitted the one complete application received. Applicant is in the process of acquiring Valhalla Townhomes (911 Pacific Ave) from Synergy Valhalla, LLC / Synergy Development Corporation. Part of the acquisition includes obtaining sufficient funding to also rehabilitate the entire complex consisting of nine buildings and 45 two-bedroom units. Renovations to be completed include: new roof and gutters, parking lot and sidewalk repairs, replacement of all kitchen and bathroom cabinets and counters, as well as appliances, interior lighting, heaters and hot water heaters as necessary. At the conclusion of the renovations, there will be 5 units with ADA mobility features and 2 units with ADA communication features. Forty-four (44) of the units will be reserved for tenants with a household income between 30% and 80% of the area median income. One unit will be utilized for an onsite manager’s unit. Only 25 of the units are proposed to be assisted with LMIHF dollars. All of the 25 units will be offered at affordable rents to households earning 50% or less of the AMI, with 9 units reserved for households earning no more than 30% of AMI, and another 9 units reserved for households earning no more than 40% AMI, for 55 years. The project has been awarded California State tax exempt bonds, federal low-income housing tax credits, and California state certificated low-income housing tax credits on May 11, 2023. Financing to acquire and rehabilitate the property is scheduled for November 9, 2023 and the renovation of the property is anticipated to take 12 months. According to the applicant, project costs continue to escalate due to a rise in interest rates and insurance costs, resulting in a $1.1 million funding gap. The $300,000 in LMIHF dollars is proposed to be used to pay a portion of the construction costs. The applicant has requested a 20-year loan at 3.0% annual simple interest with payments due from 50% of the residual receipts. In addition, the entire balance of principal and interest will be due upon the happening of the first to occur after the following: receipt of HOME Program funds of $1.1 million or greater (or similar program), resyndication of the property through the LIHTC program, or at loan maturity (20 years).  LMIHF LOAN – VALHALLA TOWNHOMES 3 OCTOBER 30, 2023 The applicant plans to seek additional funding from the HOME Program in the amount of $1.5 million in May of 2024. If those funds are awarded, the LMIHF loan will be repaid from those funds at that time. If the HOME Program funds are not awarded, then the loan will be fully repaid upon resyndication of the property through the Low-Income Housing Tax Credits (LIHTC) program, or in 20 years (or sooner without penalty). A three-member panel reviewed and scored the application, which received an average of 91 out of 100 total points. Staff recommends and requests that the City Council approve the award of a loan in the amount of $300,000 from the LMIHF as detailed in the attached award letter. The final loan documents will be brought back to the November 20th meeting for final Council approval. FISCAL ANALYSIS This loan will decrease the Low- and Moderate-Income Housing Fund cash reserves by $300,000. This fund has approximately $350,000 in cash currently and is projected to receive approximately $100,000 additional cash in future years as the RDA wind-down process is completed, all of which may only be used for projects to support low- and moderate-income housing. All payments and interest received from the borrower will be deposited back into the Low- and Moderate-Income Housing Fund to be used for future eligible projects. STRATEGIC PLAN ANALYSIS This report is consistent with the following Strategic Plan Goals: • Goal 1: Support quality services, community safety, and health to enhance the quality of life and experience of our residents and visitors • Goal 1(A): Enhance collaboration with other agencies and the community to better aid the public • Goal 2(D): Collaborate with other jurisdictions and non-profits to maximize regional effectiveness and amplify funding opportunities • Goal 3: Maintain responsible fiscal management and accountability ATTACHMENTS 1. Draft Award Letter to GreenShoots Communities, LLC / GS Valhalla, LP October 30, 2023 Mr. Raymond Junior Greenshoots Communities, LLC / GS Valhalla LP 400 Center Pointe, Suite 300, Office #D Culver City, CA 90230 RE: Award of Low and Moderate Income Housing Fund (LMIHF) Loan September 29, 2023 NOFA Dear Mr. Raymond Junior: The City of Crescent City is pleased to announce that by action of the City Council on October 30, 2023, Greenshoots Communities, LLC / GS Valhalla LP has been awarded a LMIHF loan in the amount of $300,000 to assist with the following project: • Valhalla Townhomes / GS Valhalla LP - acquisition and rehabilitation of an existing 45- unit property located at 911 Pacific Avenue, Crescent City, CA; 44 of the units will be affordable at 30%-80% of AMI; LMIHF funding will be used toward the construction costs for 25 of those units, all offered at affordable rents to households earning 50% or less of the AMI, with 9 of those units affordable at 30% AMI and another 9 units affordable at 40% AMI for 55 years The loan will be offered with a 20-year term and simple interest at 3% per annum payable from 50% of the residual receipts with the full balance of principal and interest due in full upon owner’s receipt of $1.1 million in HOME program funds (or similar program), resyndication of the property through the LIHTC program, or the maturity of the note in 20 years. The awardee will be required to enter into a LMIHF Loan Agreement that will set forth the terms and conditions for disbursement of the funding. Amongst the terms of the agreement will be a 55- year affordable housing covenant restriction on the 25 LMIHF-assisted units. Congratulations on your successful application. For further information, please contact Bridget Lacey, Grants and Economic Development Coordinator, blacey@crescentcity.org. Sincerely, Eric Wier City Manager