The URL can be used to link to this page

Home My WebLink About0472.092October 22, 1992 HONORABLE CITY COUNCIL Palo A1to, California ,/ p.~LO ALTO HOUSING CORPORATION CONTRACT AMENDMENT Members of the Council! REPORT IN BRIEF -.,-'~ The attached contract amendment for the Palo Alto H~usin9 Corporation increGses the amount of compensation and expands the scope of services of the existing FY 92/93 <"ntr"t between the City of Palo Alto and the Palo Alto Housing Corporation (PAHC), and encumbers additional funding under the Community Development Black Grant (CDBG) program. Specific PAHC a~tiyities authorized by ttle contract amendment lnclude reimbursement from CDSG funds for relocation activities at 3020-3038 Err~rson Street and PAHC's staff time and expenses for work on t~o downtown single room occupancy (SRO) projects: t~e Sarker Hotel and development of a new SRO facility. Relocation Activities at 3020-3038 Emerson Street On December 9, 1519i I the Pa10 Alto City Council approved the Palo .B.lto Housing Corpcration/s request to use COBG landba!'1k funds to acqui(e an existing ten unit apartment complex 10cated at 3020-3038 Emerson Stfeet in Palo Alto (CMR 542.91). ft ~as determined at that time that r~locatl0n vf some of the existing t'Snants wouid b~ necessary, in order t:) comply with the (OBG regulations reqllirirlg that 70 percent of the units be occupied by .... ery low or low i m::on.e res i dents. SGS, DOC of the rema 1 n ir~g landbanl< funds .... ere ea. rmark.ed for the expenses relating to the relocation Qf the dlsplaced tenants, in accordance with all federal require~nts under the Uniform Relocation and Real Property Act (URA) of 1970, ,.s amended. The Palo A1to ~ousing Corporation has completed a relocation plan and is ready to expend funds for this purpose. The contract amendment a110ws for reimbursement for actua1, reasor1able moving casts incurred as a result of the relocation, as well is the cost of i relocation consultant, up to a maximum of S~S,OOO. CMR:472 :92 11 .. I ~ ·-,' Single rpom Occupancy HousjJ19 During the 1992/9.: COSG alTOc.;Rtion cycie, Council established a "Ne .. Housing Development Fund~ for activities relating to the creation of more affordable housing oPP'!Jrtunit1es. A fund of $333,9~5 ,*.,.;;. es.tablished, wHh the stip~'ation that it be rescr~€d until Dec~mber 31, 1992 for projects addressi~g either the pr~servation or con!truction of new single room occcpancy (SRO) hcusing and/or the development of new senior houSing. Three fourtns of the funds are reserved for SRO housi~g and one-fourth for senior housing projects. On October 5. 1992, the Council was to have held a study se~s10n on potential SRO de~elopment in the Downtown area. The attached October I, 1992 staff report (CHR:443:92) addresses Downtown SRO issues. With the cancellation of the October 5 study session, the SRO is.:iIJe has been ~laced on the CUlmeil's regular agenda, becalJse of the need to amend the PAHC contract to ensure the Housing Corporation of reimbursement from CDBG funds for wor~ expended an the SRO issue, including pre-development and development costs of a Barker H~tel project and/or a new downtown SRO. It is anticipated tnat the Councn 'IIill review and provide guidanc.e regarding the SRO-related issues idfntified in the attached Octobi!r J staff report. If the outcome of that discussion requirES modification of the attached tontract amendment. those changes will either be worKed cut during the course of the Council meeting or returned to the Council in early November. RECOMMENDATION Staff recommends that COyncil appr~ve amend~nt number one to Contract C3033688 with tne Palo Alto Housing Corporation for relocati~n expenses for d1sp~aced tenants {S6S,OOO}; and admtnistrative costs relating to acquisition of the BarKer Hotel (SI8,OOO), and. new Downtown SRO facility (SI8,OOO). Respectfull~ submitted, Xl-U-w--+-'-~-{ J~ Interim City Manager KENNETH R. SCHREIBER Director of Planning and Community (nvjronment Attachmeot: Amendment to Contract C3033688 Attachment to Council Only: CMR:443:92 with Attachments CMR:472:92 10/22/92 P:\car\pehc.car P!l9l' 2 " 'C~""-';'~.., • 'fiJ ..... cc: Planning Commission falo Alto Hour,;ng Corporation CDSG C;tilens Ad~isory C~ltte~ Human Re·lations COfIIIliss1on Palo Alto C~amber Gf Cammerce, Susan Frank Ex~cutive Director Downtown Marketing Committee. Miki Schneider, Spirals, 367 University A'lienue, Palo Alto, CA Jim Bier, 400 Hamiltvn Avenue. P~lo Aito, CA Chop Keenan, 700 Emerson Street, Pi10 Alto, CA Charles R. Edelstein, 355 Santa Rita Avenue, Palo Alto CA Warren T~oits, 629 EMerson Strel>t, Palo Alto, fA Steve Fasani, Fasan! Ca~pets, 53~ Alma Street, Palo Alto, C~ Jill Vandervoort, j60S Edgewood Drive, Palo Alto, CA E. A. Haas, )8 E. Main Street, Los Gatos, CA &5030 ~s. Marion Fritz, Ma~agerl Cardinal Hotel, 235 Hamilton Aven~!, Palo Alto, CA Tony Badger, 38) Hawthorne, Palo Alt" CA 94301 Jim BYrklo, Urban Ministry, P.O. Box 213. Palo Alto, CA 94302 ~ictor Bello .. , 753 E. El Cam;no Real, Sunnyvale, CA 94086 Herb McLaughlin. c/o Kaplan, Mclaughlin & Dial, 222 Vallejo Street, San Franc1sco, CA 94111 Robert Tennyson, 360 August Circl., Meolo P •. r', CA 94025 Lynn Torin, 721 Ensign Way, Palo Alto, CA &4303 CHl!: 472: 92 p~ \c:w\pllft~. CIIr 10/22/92 ,,.., AMl<!IDJ<EN'l' NO. 1 TO CClN'l'RACT NO. C3 03 H S 8 BBTWBEN TKB CITY OP PALO ALTO Am) TBB PALO ALTO BOOS ruG COitPORATION THIS PtGREEMENT to Contract No. C303368a is ,Tlade and ent.ered into this day of ~ 1992. by and bet",'een t.he CITY OF PALO ALTO. a municipal corporation of California. hereinafter ref.r::rred to as ·CIT'z", I; and the PALO ')...l·TO HOUSING CORPORATION ('I'axpayer Identification Number ___ _1, a nonprofit corporation under the laws of the State of California, with offices at 540 Cowper Str~et~ Suite G. Palo Alto, CA 94301, hereinafter referred to as "CONTRACTOR-; & ReI TAL S E WHE.REAS, Contract No. C30:33688 was previously entered into between CITY and CONTRACTOR for the provision of services related to providing housing in CITY for per~ons and families of low, moderate and middle income levels; and federal (-CDBG·) WHEREAS, the provision of said services funding under the Community DevelopmGnt program need to be expanded; and relating to Block Grant WHEREAS~ as necessary to adjust agreement; and a result of the CDBG requirements, the compensation permitted under it is said WdER.EAS, the parties may agree to amend the agreement fram time to time; NOW. THEREFORE, in consideration of their mutual covenants, the parties hereto agree as follows: £B~ION 1. Subparagraph (b) of Section 8 of Contract No. C3033688 is hereby a..'tIended to r-ead as follows: '11(:'0) Ccmpen$ation. CITY agrees to compensate CONTRACTOR for the full performance of its se:rvices under this Agr~ement in accordance with Exhibit 'liE,· in a total sum not to exceed One Hundred Sixty Nine Thousand Dollars ($169,000) ~ Such sum is financed by One Hundred Twenty Nine Thousand Dollars ($129,OOO) in CDBG funds and Forty T.l1ousand Dollars ($40,OCO.OC} in CITY Housing Reserve funds. Funds committed under the CDBG program are contingent upon C!TY receiving the intended appropriation from the Federal Department of Housing and Urban Development.- SECTION 2. The following exhibits to Contract No. C30336SS are hereby amended to read as Bet forth in the following exhibits attached to this Amendrnent and incorporated in full by this reference: 1 .. a. Exhibit 'AI entitled ·1992-1993 program Year Scope of Servic£!s,' b~ Rxhibit 'B' entitled ~1992-1993 Contract Budget.' SECTION 3. Except as herein modified. all other provisions of and exhibits to said a9r~ement shall ~emain in full force and effect. IN WITNESS WHEREOF. the parties hereto have exe;:uted this ~~ndment the day and year first above written. ATl'BST: City Clerk APPROVRD AS TO FORM: senior ABst. City Attorney APPROVl!!l: Assistant City Manager Director of Einance Risk Manager APPROVED AS TO CVNTENT: Director of Planoing and Conmunity Enviz'onment At.tachmeri.ts: CITY OF PALO ALTO Mayor ~~ Its: ~ Taxpayer Identification Nc. 94-2262PS EXHIBIT 'AI: 1992-1993 Program Year Scope of Services EXHIBIT 'B': 1992-1993 Contr~~t Budget . , I I EXHIBIT 'A' PAW ALTO HOUSING CORPORATION 1992-113 PROGRAM )·EAJt SCOPE OF St:RVICES (AMENDED") CONTRACTOR s.'1all foster and develop decent. safe and affordable h.'lusing benefitting low and moderate income families, seniors, and the disabled in Palo Alto. To fu1fill such objectives, CONTRACTOR shall perform the following sen1ces under this agreement: I. COMMUNITY DEYEWPMENI ill QCK GRANT ACTIVITIES COt\"7RACTOR shall provide the follo,,"ing services in conformance \o1;;tlt the objectivl::s and .requiremmts of the Federal Departnlel1t of Housing and Urban De .... elopment under the Communirj DevelopmeIU Block Grant (CDBG) Program and reimbursement for such expenditures ,hall be from CDBG funds: A. INFORMATION AND REFERRAL: Administrati vo expenses to provide CDBG inoomc-eligible houseiJolds with info~tion .regarding affordable boosing options, advice on available, affordable andlor subsidized housing units, oounseJ on eligible subsidy programs and available services, referral to local agencies and service providers and, on an as-needed basis, to serve as an advocate for individuals. GOALS: Provide advice and counsel to 1,900 low and moderate income housing seekers, with at leas.!: J. 425 of those assisted to be CD BG income eligible. Coordinate provislon of social services and serve as advocate for six households needing speciaJ assistanc.e with social semce agencies, employers, landlords or neighbors. TOTAL INFORMATION AlIiD REFERRAL COSTS: $28,000 B. NEW DOWNTOWN SINGLE-ROOM OCCUPANCY (SRO) HOTEL: Administrati-.., sIIiff costs associated wilh the developmet:l 0/ a ne ... · downtown SRO hotel. ConJroaoT ,/WlJ devtkJp p/Dns and PUTSU' potential <iUs and funding murces lor the construction 0/ Q Jlew housing facility i . ., lhe down town ana tifl0nkJ.b/e to }lery low income peTSQns. TOTAL NEW SRO ADMINISTRATTVE COSTS: $18,000 • Changes in lllllks and Bold ; . r • c. ACQVlsmON OF mE BAilKER HOTEL: Administrative tI4/f ,0;;15 associDJd willt tnt aeqWsilion oftne ui<ting &,k<,llottl inc/utUng, but IlOl 1imiJu[ 10, projtrt definition and 0,,"'''''<111, and financing and funding applications. TOTAL BAilKER HOTEL ACQUISmON ADMIN. COSTS: S18,{)()() D. RELOCA770N EXPENSES: &pt1lSts fo,/ht ",/c".tWn of 1,IUUUS dis placed as Q ruu/J of the purchase of Ibt N"", Tne Aportme,us, 3020-3038 Emerson 51","" Palo Alto. ReimJJursablt upenses include the cost of a reloaztiolJ consultant I:S weU as actlilll, !'NS(.IlUJbh nwving upenses and rrplacemell1 housing tutistance ineu1Ttd by rht tIisplaced lelUUU, in aceo, dime< willt rh. Fed.1UI UnjfOmt ReloC!Jlion and Real Property A"1ui5ition Act of 1970, as om.nded (URA), and rho Code of FedelUl RegulDtWns, 49 CFII, Part 245. TOTAL RELOCA770N EXPENSES, TOT-ilL CDBG-EUGIBLE EXPENSES n. HOUSING RESERVE FUND ACTIVITIES $65,O{)(J SI29,OQ() CONTRAcroR shall provide the following services in eontonnan"" with the objectives and requirements of the City of Palo Alto Housing Reserve Guidelines. and reimbursement for such expendirures shall be frorr. the City's Housing Reserve Funds.: BMR SALES AND RENTALS: For Below Market Rate ('BMR') saies or rental units, CONTRACTOR shall administer such sales or rentals as vacan cies dictate, in compliance with the City's BMR program. TOTAL 1992-93 HOUSING RESERVE FUND FEES: $40,000 TOTAL 1992-93 CONTRACT BUDGET • Cluuoge. in l/aJics and Bold • EXHIBIT 'B' PALO ALrO HOUSING CORPORAnON 1992-93 CONTRACT BUDGET (.'L!lENDED·) COMMUNITy DEVELOPMENT BLOCK GRANT ACJJVmES A. B. c. D. Informatior. and Referral Services ""-<kJelopmfnt cow related to thf ,uqJlisitio. of thf &rlur Hotel fu-dev,wpmenJ costs reloJed to tl ne .... dowl/lQwn SRO Relocation up.nresfor U/UUIIs displa<ed from pt"m Tnf apartments, 302Q Emf'I"Jon., Palo Alto TOTAL FEES FOR cvaG FUNDS HOUSING RBSERYE FUND ACTIVlTlES BMR Sales and Rental, TDTAL HOUSING RESERVE FUNDS TOTAL CONTRACT BUDGET • Chang .. in Italics and Bold $ 28.000 18,000 18, ()()() 129. ()()() S169JXXI p UO 7 i.1