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HomeMy WebLinkAboutRDA Packet 1999/12/07 Notice is hereby given that the Chair of the Housing Authority has called and will convene a special joint meeting of the City Council/Redevelopment Agency/Housing Authority, Tuesday, December 7, 1999 at 4:00 p.m., immediately following the regular City Council meeting, in Council Chambers, located in the Public Services Building, 276 Fourth Avenue, Chula Vista, Califomia to consider, deliberate and act upon the following: Shidey~~¥t'~ CI'IY OF TUESDAY, DECEMBER 7, 1999 CHULA VISTA COUNCIL CHAMBERS 4:00 P.M. PUBLIC SERVlCES BUILDING (IMMEDIATELY FOLLOWING THE CIIY COUNCIL MEETING) SPECIAL JOINT MEETING OF THE REDEVELOPMENT AGENCY/CITY COUNCIL/HOUSING AUTHORITY OF THE CITY OF CNULA VISTA q,lq ~& ~.1-]_ : i,]~ : 1. ROLL CALL Agency/Council/Authority Members Davis, Moot, Padilla, Salas, and ChairMayor Horton 2. APPROVAL OF MINUTES: June 29, 1999 [Housing Authority] · ] :;f:l Jl~'["] ¢~f ¢~llJ ~ I ['f~% d [-] ~ !' This is an opportunity for the general public to address the Redevelopment Agency on any subject matter within the Agency's jurisdiction that is not an item on this agenda. (State law, however, generally prohibits the Redevelopment Agency from taking action on any issues not included on the posted agenda.) lf you wish to address the Agency on such a subject, please complete the "Request to Speak Under Oral Communications Form" available in the lobby and submit it to the Secretary to the Redevelopment Agency or City Clerk prior to the meeting. Those who wish to speak, please give your name and address for record purposes and follow up action. The following items have been advertised and/or posted as public hearings as required by law. lf you wish to speak to any item, please fill out the "Request to Speak Form" available in the lobby and submit it to the Redevelopment Agency or the City Clerk prior to the meeting. 3. PUBLIC HEARING: CITY COUNCIL CONSIDERATION OF THE ISSUANCE OF TAX EXEMPT OBLIGATIONS WITH RESPECT TO THE PROPOSED PEARTREE APARTMENT ACQUISITION AHD REHABILITATION PROJECT--On 10/19/99, the Housing Authority received a proposal from Chelsea Investment Corporation to hold a public headng for the acquisition and rehabilitation of a 119-unit complex know as the Peartree Apartments located at 1025 Broadway. As outlined in Chelsea's proposal, the Housing Authority will be the vehicle in apply for approximately $6.5 million in pdvate activity bonds from the California Debt Limit Allocation Committee (CDLAC). In this instance, however, the Housing Authority will not be responsible for making payments on the bonds. Chelsea will sell the bonds to investment corporations who will be responsible for the bond payments. Section 147(0 of the Internal Revenue Code requires that the proposed project and financing be approved by a governmental unit having jurisdiction over the area in which the project to be financed is located. A second component of the hearing process is the approval of a resolution approving the issuance of multi-family housing revenue bonds. [Community Development Director] AGENDA -2- DECEMBER 7, 1999 a) HOUSING AUTHORITY RESOLUTION REGARDING ITS INTENTION TO ISSUE TAX EXEMPT OBLIGATIONS FOR THE PEARTREE APARTMENT ACQUISITION AND REHABILITATION PROJECT b) COUNCIL RESOLUTION APPROVING THE ISSUANCE, SALE AND DELIVER OF MULTI-FAMILY HOUSING REVENUE BONDS BY THE HOUSING AUTHORITY OF THE CITY OF CHULA VISTA FOR THE PEARTREE APARTMENT ACQUISITION AND REHABILITATION PROJECT Staff Recommendation: Housing Authority/Council adopt the resolutions. The items listed in this section of the agenda are expected to elicit substantial discussions and deliberations by the Council, staff, or members of the general public. The items will be considered individually by the Council and staff recommendations may in certain cases be presented in the alternative. Those who wish to speak, please fill out a Request to Speak form available in the lobby and submit it to the City Clerk prior to the meeting. 4. JOINT RESOLUTION APPROVING THE SECOND AMENDMENT TO THE AGREEMENT BETWEEN THE WILSON GROUP, THE CITY OF CHULA VISTA, AND THE REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA FOR THE REMAINDER OF THE 2000 LEGISLATIVE SESSION, AND AUTHORIZING THE MAYOR/CHAIR TO EXECUTE SAID AGREEMENT ON BEHALF OF THE CITY OF CHUL,A VISTA AND REDEVELOPMENT AGENCY--On 12/31/99, the current agreement with The Wilson Group expires. The agreement provides for three two-year extensions to coincide with the state legislative sessions. On 12/15/98, the City Council acted to approve a one-year extension for the firm, to which the Wilson Group agreed. The Wilson Group has requested that the existing agreement be extended through the end of 2000. The Wilson Group has fulfilled its contractual obligations to date and has met staff expectations. Staff Recommendation: Council/Agency adopt: 1) the resolution approving the amendment to the Agreement; and 2) direct staff to issue a Request for Proposals for lobbying services at the conclusion of the 2000 legislative session. 5. DIRECTOR'S REPORT(S) 6. CHAIR(S) 7. AGENCY MEMBER COMMENTS The meeting will adjourn to an Adjourned Joint City Council/Redevelopment Agency/Housing Authority Meeting on December 14, 1999 at 6:00 p.m., immediately following the City Council meeting, in the City Council Chambers. MINUTES OF AN ADJOURNED MEETING OF THE REDEVELOPMENT AGENCY, CITY COUNCIL, AND HOUSING AUTHORITY OF THE CITY OF CHULA VISTA, CALIFORNIA June 29, 1999 6:00 P.M. An Adjourned Meeting of the Redevelopment Agency, City Council, and Housing Authority of the City of Chula Vista was called to order at 6:30 p.m. in the Council Chambers located in the Public Services Building, 276 Fourth Avenue, Chula Vista, California. CALL TO ORDER 1. ROLL CALL: PRESENT: Agency/Council/Authority Members Moot, Padilla, Salas, and Chair/Mayor Horton ABSENT: Agency/Council/Authority Member Davis ALSO PRESENT: Executive Director/City Manager Rowlands, Agency/Authority/City Attorney Kaheny, City Clerk Bigelow CONSENT CALENDAR 2. APPROVAL OF MINUTES: Housing Authority minutes of July 22, 1997, June 23, 1998 and May 18, 1999 ACTION: Authority Member Salas moved to approve the Housing Authority minutes of May 18, 1999. Authority Member Moot seconded the motion, and it carried 4-0. ACTION: Authority Member Salas moved to approve the Housing Authority minutes of July 22, 1997 and June 23, 1998. Authority Member Moot seconded the motion, and it carried 3-0-1, with Authority Member Padilla abstaining since he was not a member at that time. 3. COUNCIL RESOLUTION 19517, ESTABLISHING THE APPROPRIATIONS LIMIT FOR FISCAL YEAR 1999/2000 Article XIIIB of the California Constitution, approved by the voters in 1979 and commonly referred to as the Gann Initiative, requires each local government to establish an appropriations limit by resolution each year at a regularly scheduled meeting or noticed special meeting. The purpose of the limit is to restrict spending of certain types of revenues to a level predicated on a base year amount increased annually by an inflation factor. ACTION: Deputy Mayor Salas offered Council Resolution No. 19517, heading read, text waived. Councilmember Moot seconded the motion, and it carried 4-0. ORAL COMMUNICATIONS There were none. PUBLIC HEARINGS AND RELATED RESOLUTIONS AND ORDINANCES 4. CONSIDERATION AND ADOPTION OF THE OPERATING AND CAPITAL IMPROVEMENT BUDGETS FOR THE CITY, AND THE OPERATING BUDGET FOR THE REDEVELOPMENT AGENCY AND THE HOUSING AUTHORITY FOR FISCAL YEAR 199%2000 COUNCIL RESOLUTION 19518, APPROVING ADOPTION OF THE FINAL OPERATING A_ND CAPITAL BUDGETS OF THE CITY OF CHULA VISTA FOR THE FISCAL YEAR BEGINNING JULY 1, 1999 AND ENDING JUNE 30, 2000 AGENCY RESOLUTION 1635 AND HOUSING AUTHORITY RESOLUTION HA-19, ADOPTING THE REDEVELOPMENT AGENCY AND HOUSING AUTHORITY BUDGETS FOR FY 1999-00 AND APPROPRIATING FUNDS THEREFOR On May 25, 1999, Council received the proposed budgets for Fiscal Year 1999-2000 from the City Manager. Subsequently, Council conducted three work sessions to consider and deliberate not only on the recommendations contained in those initial documents; but also on a number of additional budget recommendations which came to light during that process. The budgets submitted for adoption represent the City Manager's initial spending plan as amended in accordance with tentative Council direction received during the budget work sessions. Staffrecommendation: Council/Agency/Housing Authority accept public testimony and adopt the fiscal year 1999-2000 Operating and Capital Project budgets as amended. (Director of Finance) Notice of the hearing was given in accordance with legal requirements, and the hearing was held on the date and at the time specified in the notice. Finance Director Powell noted the corrections to the preliminary budget which were included in the final budget. Mayor Horton opened the public hearing and asked if anyone from the audience wished to speak. There was no response. Mayor Horton then closed the public hearing. ACTION: Mayor/Chair Horton offered Council Resolution #19518, Redevelopment Agency Resolution #1635, and Housing Authority Resolution #HA-19, headings read, texts waived. The motion carried 4-0. OTHER BUSINESS 5. DIRECTOR'S REPORTS There were none. Page 2 - Council/RDA/Housing Authority ~ -¢:~ 06/29/99 6. CHAIR(S) REPORTS There were none. 7. AGENCY/COUNCIL/AUTHORITY MEMBER COMMENTS There were none. At 6:34 p.m., Chair/Mayor Horton adjourned the Housing Authority and recessed the Adjourned Redevelopment Agency/City Council Meeting. The meeting was reconvened at 8:58 p.m., at which time the Council and Agency recessed to Closed Session. CLOSED SESSION 8. CONFERENCE WITH REAL PROPERTY NEGOTIATOR PURSUANT TO GOVERNMENT CODE SECTION 54956.8 Property: 340-368 Bay Boulevard (5 parcels totaling 3.65 acres): 567-022-35 340 Bay Boulevard 1.02 acres 567-022-17 350 Bay Boulevard 0.65 acres 567-022-31 360 Bay Boulevard 0.73 acres 567-022-33 364 Bay Boulevard 063 acres 567-022-28 368 Bay Boulevard 0.62 acres Negotiating Parties: City/Redevelopment Agency (Chris Salomone); San Diego Unified Port District, B.F. Goodrich Under Negotiation: Purchase/lease terms and conditions No action was taken. ADJOURNMENT At 10:14 p.m. Chair/Mayor Horton adjourned the meeting to an Adjourned Redevelopment Agency/City Council Meeting to be held July 13, 1999 at 6:00 p.m. in the Council Chambers. Respectfully submitted, Susan Bigelow, CMC/AAE, City Clerk Page 3 - Council/RDA/Housing Authority c~ --,~ 06/29/99 JOINT CITY COUNCIL/HOUSING AUTHORITY AGENDA STATEMENT ITEM NO. MEETING DATE 1 ~)/O7/g9 ITEM TITLE: PUBLIC HEARING: CITY COUNCIL CONSIDERATION OF THE ISSUANCE OF TAX EXEMPT OBLIGATIONS WITH RESPECT TO THE PROPOSED PEAR TREE APARTMENT ACQUISITION AND REHABILITATION PROJECT a) HOUSING AUTHORITY RESOLUTION REGARDING ITS INTENTION TO ISSUE TAX EXEMPT OBLIGATIONS FOR THE PEAR TREE APARTMENT ACQUISITION AND REHABILITATION PROJECT b) COUNCIL RESOLUTION APPROVING THE ISSUANCE, SALE AND DELIVERY OF MULTI-FAMILY HOUSING REVENUE BONDS BY THE HOUSING AUTHORITY OF THE CITY OF CHULA VISTA FOR THE PEAR TREE APARTMENT ACQUISITION AND REHABILITATION PROJECT SUBMI'I'rED BY: COMMUNITY DEVELOPMENT DIRECTOR L~ ~r~ ~ REVIEWED BY: EXECUTIVE DIRECTOR (4/5'"" VOTE: YES__ NO XJ D On October 19, 1999, the City of Chula Vista received a request, including a preliminary proforma, from Chelsea Investment Corporation (Chelsea) to conduct this public headng to consider the issuance of tax exempt obligations to finance the acquisition and rehabilitation of a 119 unit complex known as the Pear Tree Apartments located at 1025 Broadway. Previously, Avalon Communities, Inc. had indicated an interest in acquiring and rehabiliting the Pear Tree Manor Apartments. After an unsuccessful attempt to receive a combination of tax credit and tax-exempt financing, Avalon abandoned the project. Soon thereafter several other development corporations vied for the opportunity to acquire and rehabilitate this multi-family complex. Finally, the seller of Pear Tree entered into a Letter of Intent with Chelsea to acquire and rehabilitate Pear Tree Manor. The proposal indicates the Chula Vista Housing Authority will be the vehicle for applying for approximately $6.5 million in private activity bonds from the California Debt Limit Allocation Committee (CDLAC). Section 147(0 of the Internal Revenue Code requires the proposed project and financing be approved by a governmental unit having jurisdiction over the area in which the project to be financed is located. At this time, the City Council is asked to hold a public hearing on the question of whether the Housing Authority should issue tax exempt bonds for the financing of the project. Additionally, it is requested that the Housing Authority adopt a resolution expressing its preliminary intention to issue bonds and the Council to adopt a resolution authorizing the issuance, sale, and delivery of the bonds by the Authority. The requested actions are necessary in order to allow the project developer to submit an application to the State bonding authority, and to allow the PAGE ~'~ ITEM ,--~ MEETING DATE 1 "'/07/9B developer to receive reimbursement out of bond proceeds for actual costs it incurs leading up to the actual sale of bonds. The developer is in the process of preparing an application for an allocation of the 2000 state ceiling on private activity bonds for multi-family rehabilitation projects from the California Debt Limit Allocation Committee (CD[AC). The application process is a very competitive one, which needs to demonstrate readiness to complete the project and strong support from the community, If successful in obtaining a bond commitment from CDLAC, the developer plans to come back to the Authority to request final approval for the issuance of the bonds. The issuance of the bonds is in the public interest due to the reservation of all of the units within the project as affordable housing for very Iow and Iow income households. The public hearing is required by federal tax law governing the issuance of tax exempt bonds. DATION That the City Council conduct the required public headng regarding the Authodty's intent to issue tax exempt obligations for the Pear Tree Apartment project, a) That the Housing Authority adopt a resolution regarding its intention to issue tax-exempt obligations for the Pear Tree Apartment project. b) That the City Council adopt a resolution approving the issuance, sale and delivery of multi-family revenue bonds of the Housing Authority of the City of Chula Vista for the Pear Tree Apartment project. The Housing Advisory Commission approved the multi-family rehabilitation project originally submitted by Avalon Communities, LLC. Due to the cancellation of the November 24, 1999 meeting in observance of the Thanksgiving holiday, staff will submit the Chelsea proposal at the Housing Advisory Commission meeting scheduled for December 15, 1999. DIBCU The City's State-mandatad Housing Element requires the provision of housing for all economic groups and to distribute affordable housing developments throughout the City's jurisdiction. The City's strategy to implement this mandate, the "Affordable Housing Program", is to require 10 percent (10%) of any new subdivision in excess of fifty (50) units to made affordable for Iow and moderate income families (5% Iow and 5% moderate) and to balance affordable housing development throughout the City in the form of new development and rehabilitation of the existing housing stock. THE PROPOSED PROJECT The Pear Tree complex is located in the westem portion of the City consisting of 119 units and is a project in need of rehabilitation. Chelsea, a highly regarded and experienced development company, plans to substantially upgrade the interior and extedor of the buildings. The Pear Tree complex offers two pools, a recreation area, a classroom for adult classes, storage areas, laundry rooms, and garages. The proposed unit mix and sizes are as follows: Five (5) One Bedroom units measuring 650 square feet; One Hundred Nine (109) Two Bedroom units measuring 850 square feet; and Five (5) Three Bedroom units measuring 1040 square feet. PAGE 3, ITEM ---~ MEETING DATE 1 ~'/07/gg Income and Rent Restrictions All the units will be affordable to Iow income households. It is the intent that these Iow-income units will satisfy the requirements of the City's program for the provision of affordable housing for multi-family rental units on the western side of the City. Of the 119 units, 20% (24 units) will be rent restricted to households whose income is at or below 50% of the Area Median Income (AMI) as determined by HUD and 80% (95 units) will be rent restricted for households earning 60% of AMI. Of the 119 units, 24 will be affordable to households at 50% of the median income, which is currently $26,250 for a household size of four. The remainder of the units (95) will be affordable to households at 60% of median income, which is currently $31,500 for a household size of four. It is proposed that the rents on the 5 - 1 bedroom units will range from $466 to $546/month. Rents on the 109 - 2 bedroom units will range from $565 to $676/month and rents on the 5 - 3 bedroom units will range from $641 to $777/month. Income and rent restrictions for Peartree Manor Apartments will be maintained for a period of no less than 52 yearn, exceeding the 33-year term of the bond. Rehabilitation Efforts Chelsea has provided a preliminary estimate for the level of interior rehabilitation to be up to $15,000 per unit. This amount falls within the industry standard for rehabilitation projects of this size. The scope of woA is considered to be extensive rehabilitation and will include interior painting, new carpeting, new cabinets, new appliances, blinds, sinks, vinyl flooring, and bathroom renovation. The exterior of the building will be painted, repair fascia boards, replace extedor window border, repair existing roof, and replace guttem and downspouts. The landscaping, tot lots and pool area will be upgraded. Although the City has been successful in helping to produce affordable housing through new construction in the eastem portion of the City, this project represents an opportunity for acquisition and rehabilitation of a large multi- family rental project on the western side of the City. While the units are being rehabilitated, the Crime Free Multi-Housing Program developed by the Chula Vista Police Department will be implemented. A main component of the Cdme Free Multi-Housing Program will be to obtain cooperation of Chelsea to make recommended improvements to the complex in an effort to reduce the rate of break- ins and to establish a fdendly association with the police officers and apartment residents in creating a safe living environment for the Peartree residents. In addition to complementing the City's desire to rehabilitate large multi-family rental complexes located on the western portion of the City, staff supports Chelsea's proposal for the following reasons: · The proposal's effectiveness in serving the City's needs and priorities as expressed in the Housing Element of the General Plan and the HUD Consolidated Plan. · The preposal's consistency with the City's affordable housing policies as expressed in the Housing Element and the HUD Consolidated Plan, PAGE 4, ITEM MEETING DATE 1 Proposed FinancinR of the Project It is currently estimated that the proposed total project cost will be approximately $10,2 million. Soumes of funding for the project will include approximately $4,8 million in bond proceeds, $2,8 million in Iow income housing tax credits, and $2,6 million from other sources which could include developer equity and a City/Agency contribution. It is anticipated that the developer will request financial assistance from the Redevelopment Agency to meet an expected financing gap which has yet to be fully determined. A recommendation for financial assistance will be presented to the Agency for consideration at the December 14, 1999 Redevelopment Agency meeting, Any financial assistance will be based upon a full financial analysis of the project costs, need for financial assistance and subject to the negotiation of satisfactory terms of the Regulatory Agreement and Loan Agreement and the approval of such terms and documents by the Authority and the Agency. Conducting the public headng and approving this resolution only indicates an intention by the Authority to issue tax exempt obligations and does not commit the City or the Authority to issue bonds at this time. All costs related to the issuance of the bonds will be paid from bond proceeds or profits. The bonds will be secured by the project and will not constitute a liability or obligation to the Authority or the City. Some staff costs will be associated with monitoring compliance with the Regulatory Agreement. Those costs will be reimbursed from an annual administrative and origination fee to be paid by Developer to the Authority, which will be negotiated before the Authority approves the actual issuance of the bond. It is anticipated that the Developer will request financial assistance from the Redevelopment Agency to meet an expected financing gap. A recommendation for financial assistance will be presented to the Agency for consideration before or at such time as final approval of the issuance of the bonds is requested. (Atw~od) H:\HOME\COMMDEWSTAFF,REP\11-23-99\PEARTREE [December 1, 1999 (12:8PM)] RESOLUTION NO. HOUSING AUTHORITY RESOLUTION REGARDING ITS INTENTION TO ISSUE TAX EXEMPT OBLIGATIONS FOR THE PEAR TREE APARTMENT ACQUISITION AND REHABILITATION PROJECT WHEREAS, the Housing Authority of the City of Chula Vista (the "Issuer") desires to assist Chelsea Investment Corporation (the "Applicant") in financing the costs of acquiring and rehabilitating the Pear Tree Apartments, as provided in Exhibit A attached hereto and incorporated herein (the "Project"); WHEREAS, the Issuer intends to assist in the financing of the acquisition and rehabilitation of the Project or portions of the Project with the proceeds of the sale of obligations the interest upon which is excluded from gross income for federal income tax purposes (the "Obligations"), which Obligations are expected to be issued pursuant to Chapter 1 of Part 2 of Division 24 of the Health and Safety Code of the State of California; provided, however, that this Resolution shall not authorize the issuance of the Obligations and provided further that neither the faith and credit nor the taxing power of the Issuer shall be pledged to repay such Obligations if, and when, authorized; and WHEREAS, prior to the issuance of the Obligations the Applicant desires to incur certain expenditures with respect to the Project from its own available monies which expenditures are desired to be reimbursed from a portion of the proceeds of the sale of the Obligations if, and when, issued; NOW, THEREFORE, THE BOARD OF COMMISSIONERS OF THE HOUSING AUTHORITY OF THE CITY OF CHULA VISTA DOES HEREBY RESOLVE, ORDER AND DETERMINE AS FOLLOWS: SECTION 1. This Board of Commissioners of the Issuer has received an application for the financing of the Project on behalf of the Applicant (the "Application"). The Applicant will incur costs with respect to the Project prior to the issuance of the Obligations. The Issuer hereby states its intention and reasonably expects to reimburse the Applicant for such costs with proceeds of the Obligations; provided, however, that nothing herein obligates the Issuer to issue the Obligations or provides the Applicant with any legal right to compel the issuance of the Obligations, which decision remains in the final discretion of the Issuer. Exhibit A describes the general character, type, purpose, and function of the Project. SECTION 2. The reasonably expected maximum principal amount of the Obligations is $6,500,000. SECTION 3. This resolution is consistent with the budgetary and financial circumstances of the Issuer, as of the date hereof. No monies from sources other than the Obligation issue are, or are reasonably expected to be reserved, allocated on a long-term basis, or otherwise set aside by the Issuer (or any related party) pursuant to their budget or financial policies with respect to the Project costs. This Board is not aware of any previous adoption of official intents by the Issuer that have been made as a matter of course for the purpose of reimbursing expenditures relating to THE Project and for which tax-exempt obligations have not been issued. DOCSOC\698545 v 1 ~29999.0000 ~ SECTION 4. This resolution is adopted as official action of the Issuer in order to comply with Treasury Regulation § 1.103-8(a)(5) and Treasury Regulation § l.150-2 and any other regulations of the Internal Revenue Service relating to the qualification for reimbursement of Issuer expenditures incurred prior to the date of issue of the Obligations, is part of the Issuer's official proceedings, and will be available for inspection by the general public at the main administrative office of the Issuer. SECTION 5. All the recitals in this Resolution are true and correct. Presented by Approved as to form by Chris Salomone John I{4. Kal~enx ~ ~ Director of Community Development City Attorney [Atwood] H:\HOME\COMMDEV\RESOS\Inducement Resolution Pear Tree Apartments DOCSOC\698545v 1\29999.0000 EXHIBIT A CONSTRUCTION AND DESIGN DESCRIPTION Pear Tree Manor is a 119 unit, large family complex located in San Diego County. The construction of the property is of wood frame and stucco exterior. The Project offers the following amenities to its tenants: two pools, recreation area, common areas, three laundry rooms, and mature landscaping. Pear Tree Manor consists of 11 two-story buildings on 4.31 acres. DOCSOC\698545vI\29999.0000 RESOLUTION NO. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING THE ISSUANCE, SALE AND DELIVERY OF MULTI-FAMILY HOUSING REVENUE BONDS BY THE HOUSING AUTHORITY OF THE CITY OF CHULA VISTA FOR THE PEAR TREE APARTMENT ACQUISITION AND REHABILITATION PROJECT WHEREAS, the Housing Authority of the City of Chula Vista (the "Authority") adopted a resolution that constituted a declaration of official intent to issue multifamily housing revenue bonds (the "Bonds") to finance the acquisition and rehabilitation of a multifamily rental housing Project in the City of Chula Vista described in the notice of public hearing attached as Exhibit A hereto (the "Project"); and WHEREAS, in order for interest on the Bonds to be tax-exempt, Section 147(t) of the Internal Revenue Code of 1986 requires that the Bonds be approved by the City Council as the applicable elected representative after a public hearing following reasonable public notice; and WHEREAS, notice of a public hearing with respect to the proposed issuance of the Bonds was published in a ne~vspaper of general circulation in the City on November 20, ! 999; and WHEREAS, the public hearing was held on December 7, 1999, and an opportunity was provided for interested persons to express their views on the issuance of the Bonds and on the nature and location of the Project; NOW THEREFORE, BE IT RESOLVED, by the City Council of the City of Chula Vista that this City Council, as the applicable elected representative under Section 147(f) of the Code, approves the issuance of the Bonds by the Authority to finance the acquisition and rehabilitation of the Project. Presented by Approved as to form by C~is ~&~ Jo~ M. Kaheny Community Development Director City Attorney [Atwood] H:\shared\COMMDEV\Resolution of Governing Body (Pear Tree Manta) DOCSOC\695599v 1\29999.0000 EXHIBIT A [FORM OF] NOTICE OF PUBLIC HEARING NOTICE IS HEREBY GIVEN that the Housing Authority of the City of Chula Vista on Tuesday, December 7, 1999, at the hour of 6:00 p.m., at the City Council Chambers, 276 Fourth Avenue, Chula Vista, California, will hold a public hearing in accordance with Section 147(f) of the internal Revenue Code of 1986 with respect to the proposed issuance by the Housing Authority of the City of Chula Vista of its multi family housing revenue bonds, in order to finance the acquisition and rehabilitation of the 122-unit multifamily rental housing project known as Pear Tree Manor located at 1025 Broadway in the City of Chula Vista. The aggregate principal amount of the bonds to be issued with respect to this project will not exceed $6,500,000. The owner/operator of the Project will be Chelsea Investment Corporation or a partnership or limited liability company formed by it for the purpose of owning the project. Notice is further given that at said hearing, all interested parties will have an opportunity to be heard on the question of whether or not such multifamily housing revenue bonds should be issued. Written comments may also be submitted prior to the hearing, c/o Ms. Judith Atwood, Housing Authority of the City of Chula Vista, 276 Fourth Avenue, Chula Vista, California 91910. Dated: November 20, 1999 CITY COUNCIL OF THE CITY OF CHULA VISTA DOCSOC\695599v 1\29999.0000 JOINT REDEVELOPMENT AGENCY/CITY COUNCIL AGENDA STATEMENT ITEM NO. MEETING DATE 12/07/gg ITEM TITLE: a) COUNCIL RESOLUTION APPROVING THE SECOND AMENDMENT TO THE AGREEMENT BETWEEN THE WILSON GROUP AND THE CITY OF CHULA VISTA FOR THE REMAINDER OF THE 2000 LEGISLATIVE SESSION, AND AUTHORIZING THE MAYOR TO EXECUTE SAID AGREEMENT ON BEHALF OF THE CITY OF CHULA VISTA b) AGENCY RESOLUTION APPROVING THE SECOND AMENDMENT TO THE AGREEMENT BETWEEN THE WILSON GROUP AND THE REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA FOR THE REMAINDER OF THE 2000 LEGISLATIVE SESSION, AND AUTHORIZING THE CHAIR TO EXECUTE SAID AGREEMENT ON BEHALF OF THE REDEVELOPMENT AGENCY SU",M:'rrE,', --Y: LEGISLATIVE COMMITTEE DAVID D. ROWLANDS, JR., CITY MANAGER REVIBWED BY: EXECUTIVE DIRECTOR (4/5TM VOTE: YES__ NO X On December 31, 1999, the current agreement with The Wilson Group expires. The agreement provides for three two-year extensions to coincide with the state legislative sessions. On December 15, 1998, the City Council acted to approve a one-year extension for the firm, to which the Wilson Group agreed. The Wilson Group has requested that the existing agreement be extended through the end of 2000. The Wilson Group has fulfilled its contractual obligations to date and has met staff expectations. STAFF RECOMMENDATION: That the City Council/Redevelopment Agency: 1)approve a final amendment to the Agreement with The Wilson Group for the 2000 legislative session (proposed agreement attached as exhibit "A"), with an effective period extending through December 31, 2000; and 2) direct staff to issue a Request for Proposals for lobbying services at the conclusion of the 2000 legislative session. LEGISLATIVE COMMITTEE RECOMMENDATION: Support staffs recommendation. Back.qreund In December of 1996, Council and the Redevelopment Agency approved an agreement which retained the legislative advocacy services of The Wilson Group for the 1996-1998 state legislative session. Contained in the agreement was an option to renew the agreement at the mutual discretion of the Council/Agency and The Wilson Group for three two-year pedods coinciding with the state legislative sessions. PAGE 2~ ITEM "'/" MEETING DATE 12/07/99 On December 15, 1998 the City 0ouncil opted to extend the Wilson Group contract by one year, rather than the full legislative session. Recent discussions be~een the City Manager and the firm refiect the firm's desire for one additional year's service with the City. It is staff's recommendation, therefore, to extend the firm's contract through 2000 in order to complete the legislative session and to issue a Request for Proposals for lobbying sen/ices at the conclusion of the session. Scope of Work The existing agreement designates The Wilson Group as Chula Vista's official legislative advocate with the California State Legislature, State agencies, boards and commissions, or other legislative bodies, as well as the League of California Cities. Further, the agreement requires that the City/Agency be provided with comprehensive legislative services, including: 1. Review of all bills introduced in the California Legislature, informing the City of all State legislation affecting the City's interests and forwarding copies of such bills to the City (recent technological improvements now allow the City staff to download the text of most bills from the Intemet, thereby negating the need for hard copies of these bills to be mailed); 2. Attending all League of California Cities' regular "City representative" meetings and briefings; 3. Tracking legislation of interest to the City, maintaining bill records and sending weekly updated information on these bills to the City; 4. Arranging meetings with legislative representatives and performing those customary duties of legislative advocacy on behalf of the City to the best of their ability, experience and expertise; 5. Gathering data and providing information to the City on such matters as: · State Agency and department regulations, guidelines, directives and other instruments of administrative policy which may impact Council/Agency operations; · Funding opportunities for proposed City and Agency projects and maximizing use of all available State resources for financing City programs and mandates; · Hearings, reports and testimony of interest to the City. 6. Representing the Council/Agency in meetings with state agencies, boards, commissions and legislative bodies; 7. Developing legislative initiatives to assist in the implementation of the Council/Agency legislative program; 8. Tracking and monitoring propositions and initiatives at the State level and keeping the City apprised of proposals which impact City/Agency services. Performance of Sen/ice Over the course of the 1999 state legislative session, The Wilson Group consistently fulfilled the obligations of their contract. The firm provided information dudng the state budget process which required: · attendance at critical late-evening and weekend legislative sessions, · last-minute research regarding changing bill analyses and legislators' positions, and · delivery of letters of support or opposition directly to legislators in the critical hours before committee and floor votes. PAGE 3, ITEM ~ MEETING DATE 1 2/07/99 In addition, the Wilson Group staff worked successfully with this area's state representatives to secure funding for the Chula Vista Nature Center. The staff is hopeful of repeating that success in 2000. For these reasons, the staff submits its recommendation that the firm's contract be extended through the balance of this legislative session. Proposed Aqreement Amendments: Term The existing agreement expires on December 31, 1999. As referenced above, The Wilson Group has requested that the agreement be extended through the remainder of this legislative session. Staff recommends that this extension be granted. Fees and Expenses The existing agreement, as amended, states: For performance of all of the Defined Services by Consultant as herein required, City shall pay a single fixed fee in the amounts and at the times or milestones or for the Deliverables set forth below: Single Fixed Fee Amount: $61,200 per year payable as follows: 12 equal monthly payments of $5,100. For the cost of expenses incurred by Consultant in the performance of services herein required, City shall reimburse Consultant up to $400 total per month for the expenses set forth below: · copies · travel, or pro-rated portion as directly related to City · pdnting · postage · delivery · Iong distance telephone charges · other actual identifiable direct costs: Bill Room Copy Service Computerized Bill Tracking Service The fiscal impact of the recommended action is a maximum of $65,800. Sufficient funds are available to carry this contract through the end of this fiscal year (account numbers 05300-6401, 31710-6501, 60200-6501, 61110-6501, 61120-6501,62100-6501, 63100-6501). Staff will return with a request for the remaining funds in the FY 2000/2001 budget. Although the fiscal impacts of many of The Wilson Group's efforts can be difficult to estimate, there is ample evidence that the actions of the City's lobbyist played a pivotal role in Chula Vista's success in obtaining more than $200,000 for the Chula Vista Nature Center. Coming fiscal issues will include additional funds for the Nature Center and a members request from Senator Peace for funding to renovate Gregg Rogers Park. Attachments: Exhibit A: First Renewal of Agreement for Consulting Services between the City of Chula Vista and the Redevelopment Agency of the City of Chula Vista and The Wilson Group. RESOLUTION NO. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING THE SECOND AMENDMENT TO THE AGREEMENT BETWEEN THE WILSON GROUP FOR THE REMAINDER OF THE 2000 LEGISLATIVE SESSION, AND AUTHORIZING THE MAYOR TO EXECUTE SAID AGREEMENT ON BEHALF OF THE CITY OF CHULA VISTA WHEREAS, the City and The Wilson Group entered into a two-year agreement on December 10, 1996 whereby The Wilson Group provides lobbying services for the City; and WHEREAS, the City exercised its option to extend that agreement for an additional year; and WHEREAS, the current agreement with The Wilson Group expires on December 31, 1999; and WHEREAS, the Agreement provides for three two-year extensions to coincide with the state legislative sessions, and the Wilson Group has requested that the existing Agreement be extended. NOW, THEREFORE, BE IT RESOLVED the City Council of the City of Chula Vista does hereby approve the Second Amendment to the Agreement with the Wilson Group for legislative representation for the remainder of the 2000 legislative session, in the form presented, a copy of which is on file in the office of the City Clerk. BE IT FURTHER RESOLVED that the Mayor of the City of Chula Vista is hereby authorized to execute said agreement for and on behalf of the City of Chula Vista. Presented by Approved as to form by David D. Rowlands, Jr. Jo~n M. Kahe~, City City Manager ~ty Attorney H ~ \home \ lorraine Ir s \wil son leg RESOLUTION NO. RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA APPROVING THE SECOND AMENDMENT TO THE AGREEMENT BETWEEN THE WILSON GROUP FOR THE REMAINDER OF THE 2000 LEGISLATIVE SESSION, A. ND AUTHORIZING THE CHAIR TO EXECUTE SAID AGREEMENT ON BEHALF OF THE REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA WHEREAS, the City and The Wilson Group entered into a two-year agreement on December 10, 1996 whereby The Wilson Group provides lobbying services for the City; and WHEREAS, the City exercised its option to extend that agreement for an additional year; and WHEREAS, the current agreement with The Wilson Group expires on December 31, 1999; and WHEREAS, the Agreement provides for three two-year extensions to coincide with the state legislative sessions, and the Wilson Group has requested that the existing Agreement be extended. NOW, THEREFORE, BE IT RESOLVED the Redevelopment Agency of the City of Chula Vista does hereby approve the Second Amendment to the Agreement with the Wilson Group for legislative representation for the remainder of the 2000 legislative session, in the form presented, a copy of which is on file in the office of the City Clerk. BE IT FURTHER RESOLVED that the Chair of the Redevelopment Agency of the City of Chula Vista is hereby authorized to execute said agreement for and on behalf of the Redevelopment Agency of the City of Chula Vista. Presented by Approved as to form by David D. Rowlands, Jr. Executive Director Agency Attorney SECOND AMENDMENT TO THE AGREEMENT BETWEEN THE CITY OF CHULA VISTA AND THE WILSON GROUP, LLC FOR LEGISLATIVE REPRESENTATION Recitals This Second Amendment is entered into effective as of 1999, by and between the City of Chula Vista ("City") and The Wilson Group, ("Consultant") LLC, with reference to the following facts: WHEREAS, City and Consultant previously entered into an Agreement ("Agreement") on December 10, 1996, whereby Consultant provides lobbying services for the City; and WHEREAS, the Agreement allows for renewal of the Agreement in two year increments; and WHEREAS, the parties exercised the renewal option of the Agreement on December 15, 1998 for a one year period; and WHEREAS, the parties now desire to renew the Agreement for an additional one year term. NOW, THEREFORE, in consideration of the recitals and the mutual obligation of the parties set forth herein, Consultant and City agree as follows: 1. Paragraph 8D of Exhibit A to the Agreement, entitled Date for Completion of All Consultant Services, is hereby replaced with the following: December 31, 2000. 2. Paragraph 18C of Exhibit A to the Agreement, entitled Bill Processing, City's Account Number, is hereby deleted. 3. Except as expressly provided herein, all other provisions of the Agreement and the First Amendment to the Agreement shall remain in full force and effect. 1 SIGNATURE PAGE TO SECOND AMENDMENT TO THE AGREEMENT BETWEEN THE CITY OF CHULA VISTA AND THE REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA AND THE WILSON GROUP, LLC Dated: City of Chula Vista Attest: By: Shirley Horton, Mayor Redevelopment Agency of the Susan Bigelow, City Clerk City of Chula Vista Approved as to form: By: Shirley Horton, Chair John M. Kaheny, City Attorney The Wilson Group, LLC By: H: [Home ~At t orney~Agree~Wil son ~ 2nd 2