HomeMy WebLinkAboutRES NO 202-02RESOLUTION NO. 202 ' 02
A RESOLUTION OF THE COUNCIL OF THE CITY OF
BAKERSFIELD AUTHORIZING THE SUBMISSION OF A
SECTION 108 LOAN GUARANTEE APPLICATION TO THE
UNITED STATES DEPARTMENT OF HOUSING AND URBAN
DEVELOPMENT
WHEREAS, the City of Bakersfield has determined that a high priority exists for a public
facilities improvement project in various slum and blighted neighborhoods, including a
southeast street improvement project in three locations: California Avenue Street from Chester
Avenue east to the railroad tracks (south of Washington Avenue); Union Avenue Street from
California Avenue south to Belle Terrace; and Brundage Lane from Chester Avenue east to
Union Avenue; and
WHEREAS, the proposed projects are included in the City's adopted One Year Action
Plan (FY 2002-2003) of the Consolidated Plan: and
WHEREAS, the Section 108 Loan Guarantee program, implemented by the United
States Department of Housing and Urban Development (HUD), is designed to provide funds to
assist with these types of projects; and
WHEREAS, under the Section 108 Loan Guarantee program, the City can borrow up to
five years worth of its annual Community Development Block Grant allocation, and can take up
to twenty years to repay the principal and interest; and
WHEREAS, the City is requesting a total of $800,000 in Section 108 Loan Guarantee
funds to assist with the public facility improvement project; and
WHEREAS, the City Manager is authorized to submit the Section 108 Loan Guarantee
application and amendments thereto and all understandings and assurances contained therein,
and to act in connection with the application to provide such additional information as may be
required.
NOW, THEREFORE, BE IT RESOLVED by the Council of the City of Bakersfield as
follows:
SECTION 1. The City hereby certifies and assures with respect to its application for a
loan guarantee pursuant to Section 108 of the Housing and Community Development Act of
1974, as amended, that it possesses the legal authority to make the pledge of grants required
under 24 CFR 570.705 (b) (2).
SECTION 2. As prerequisites for submission of the application to HUD, the City
certifies that it has:
(a) Furnished citizens with information required by Section 570.704(a) (2)(i) of Title 1
of the Housing and Community Development Act of 1974, as amended;
(b) Held at least one public hearing, on November 20, 2002, to obtain the views of
citizens on community development and housing needs; and
(c) Prepared its application in accordance with Section 570.704(a)(1)(iv) of Title 1 of
The Housing and Community Development Act of 1974, as amended, and made the application
available to the public.
SECTION 3. The City has and will continue to follow a detailed citizen participation
plan that meets the requirements described in Section 570.704(a)(2) of Title 1 of the Housing
and Community Development Act of 1974, as amended.
SECTION 4. The City has and will continue to affirmatively further fair housing, and the
guaranteed loan funds will be administered in compliance with:
(a)
seq.); and
Title VI of the Civil Rights Act of 1964 (Public Law 88-352, 42 U.S.C. 2000d et
(b) The Fair Housing Act (42 U.S.C. 3601-20).
SECTION 5. The City will expend in the aggregate, at least 70 percent of all CDBG
funds, as defined in Section 570.303(e) of Title 1 of The Housing and Community Development
Act of 1974, as amended, during the one, two, or three consecutive years specified by the City
for its CDBG program on activities which benefit Iow/moderate income persons, as described in
criteria in Section 570.208(a) of the Act.
SECTION 6. The City has and will continue to comply with the requirements governing
displacement, relocation, real property acquisition, and the replacement of Iow and moderate
income housing described in Section 570.606.
SECTION 7. The City has and will continue to comply with other provisions of the Act
and with other applicable laws.
SECTION 8. The City has and will continue to certify regarding debarment,
suspension, and other responsibility as follows:
(a) The prospective recipients of the Section 108 Loan Guarantee funds and all of
their contractors will certify to the best of their knowledge and belief, that they:
1). Are not presently debarred, suspended, proposed for debarment, declared
ineligible, or voluntarily excluded from covered transactions by any Federal department or
agency;
2). Have not, within a three year period preceding approval of their application,
been convicted of or had a civil judgment rendered against them for commission of fraud or a
criminal offense in connection with obtaining, attempting to obtain, or performing a public
(Federal, State or local) transaction or contract under a public transaction; violation of Federal
or State antitrust statutes or commission of embezzlement, theft, forgery, bribery, falsification or
destruction of records, making false statements, or receiving stolen property;
3). Are not presently indicted for or otherwise criminally or civilly charged by a
government entity (Federal, State or local) with commission of any of the offenses enumerated
in paragraph (a)2 of this certification; and
4). Have not, within a three year period preceding approval of their application,
had one or more public transactions (Federal, State or local) terminated for cause or default.
SECTION 9. The City assures and certifies with respect to its application for a loan
guarantee pursuant to Section 108 of the Housing and Community Development Act of 1974,
as amended, that it has made efforts to obtain financing for the activities described herein
without the use of such guarantee, that it will maintain documentation of such efforts for the
term of the loan guarantee, and that it cannot complete such financing consistent with the
timely execution of the program plans without such guarantee.
SECTION 10. The City has and will continue to hereby certify, to the best of its
knowledge and belief, the following:
(a) No Federal appropriated funds have been paid or will be paid, by or on behalf of
it, to any person for influencing or attempting to influence an officer or employee of any agency,
a Member of Congress, an officer or employee of Congress, or an employee of a Member of
Congress in connection with the awarding of any Federal contract, the making of any Federal
grant, the making of any Federal loan, the entering into of any or cooperative agreement, and
the extension, continuation, renewal amendment, or modification of any Federal contract, grant,
loan or cooperative agreement;
(b) If any funds other than Federal appropriated funds have been paid or will be paid
to any person for influencing or attempting to influence an officer or employee of any agency, a
Member of Congress, an officer or employee of Congress, or any employee of grant, loan or
cooperative agreement, it will complete and submit Standard Form LLL, "Disclosure Form to
Report Lobbying," in accordance with its instructions; and
(C) It will require that the language of paragraph (a) of this paragraph be included in
the award documents for all subawards at all tiers (including subcontracts, subgrants, and
contracts under grants, loans and cooperative agreements) and that all subrecipients shall
certify and disclose accordingly.
SECTION 11. Continue to maintain a drug-free workplace by:
(a) Publishing a statement notifying employees that the unlawful manufacture,
dispensing, possession, or use of a controlled substance is prohibited in the grantee's
workplace and specifying the actions that will be taken against employees for violation of such
prohibition;
(b) Establishing an ongoing drug-free awareness program to inform employees
about the following:
1). The dangers of drug abuse in the workplace;
2). The grantee's policy of maintaining a drug-free workplace;
3). Any available drug counseling, rehabilitation, and employee assistance
programs; and
4). The penalties that may be imposed upon employees for drug abuse
violations occurring in the workplace.
(c) Making it a requirement that each employee engaged in grant activity be given a
copy of the statement required by paragraph (a).
(d) Notifying the employee in the statement required by paragraph (a) that, as a
condition of employment under the grant, the employee will:
1). Abide by the terms of the statement; and
2). Notify the employer in writing of his or her conviction for a violation of a
criminal drug statute occurring in the workplace no later than five calendar days after such
conviction.
(e) Notifying the agency in writing, within ten calendar days after receiving notice
under subparagraph (d) 2) from an employee or otherwise receiving actual notice of such
conviction. Employers of convicted employees must provide notice, including position and title,
to every grant officer or other designee on whose grant activity the convicted employee was
working, unless the Federal agency has designated a central point for the receipt of such
notices. Notice shall include the identification number(s) of each affected grant.
(f) Taking one of the following actions, within 30 calendar days of receiving notice
under paragraph (d) 2), with respect to any employee who is so convicted:
1). Taking appropriate personnel action against such employee, up to and
including termination, consistent with the requirements of the Rehabilitation Act of 1973, as
amended, and any other applicable federal and state laws; and
2). In appropriate circumstances, require an employee to participate
satisfactorily in a drug abuse assistance or rehabilitation program approved for such purpose by
a Federal, State or local health, law enforcement, or other appropriate agency.
SECTION 12. This Resolution shall be effective immediately upon its adoption.
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I HEREBY CERTIFY that the foregoing Resolution was passed and adopted by the council of
the City of Bakersfield at a regular meeting thereof held on November 20, 2002, by the
following vote;
AYES: OOUNO!L.MEMB~R CAHSON, BENHAM, MAGGARO, COUCH, HANSON, SULLIVAN, SALV~OlO
NOES: COU N CILi~EM[~F.~ ~ ....
A~TAIN: COUNCILMEMBER ~ , ,
ABSENT: ~tL~ ~.d~ .
/~..,s-,~. CITY CLERK and Ex Offlc'lo Clerk of the
Council of the City of Bakersfield
APPROVED NOV ~ 0
HARVE~ L.HALL
Mayor
APPROVED AS TO FORM:
BART J. THILTGEN
City Attorney
JANICE SCANLAN
' Deputy City Attorney
bakersfleld/800000108resol.doc
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NOTICE OF PUBLIC MEETING AND PUBLIC HEARING BEFORE THE COUNCIL OF THE
CITY OF BAKERSFIELD
NOTICE IS HEREBY GIVEN that a public meeting will be held before the Council of the City of
Bakersfield at 7:00 p.m., or as soon thereafter as the matter may be heard, on November 20,
2002, in the Council Chambers of City Hall, 1501 Truxtun Avenue, Bakersfield California for the
purpose of amending the City's FY 2002-03 Community Development Block Grant Program
(CDBG) Action Plan and authorizing the submittal of a Section 108 Loan Guarantee request to
the U.S. Department of Housing and Urban Development (HUD). The specific actions will
include:
· Amend the current 2002-2003 annual Action Plan to the City's Community Development
Block Grant Program (CDBG) to include:
1. The submittal of a Section 108 Loan for construction and installation of public streets,
sidewalks and other public improvements located in the Southeast Bakersfield
Redevelopment area. The project site is: California Avenue from Chester Avenue east
to the railroad tracks (south of Washington Street); Union Avenue from California
Avenue south to Belle Terrace; and Brundage Lane from Chester Avenue east to Union
Avenue.
Authorize the submittal of a $800,000 Section 108 Loan Guarantee request to assist with
the construction and installation of pubic streets, sidewalks and other public
improvements.
The City intends to apply to the U.S. Department of Housing and Urban Development for
$800,000 in Section 108 Loan funds for the following activities:
· Construction and installation of street improvements: California Avenue - Chester Avenue
east to railroad tracks ($413,500).
· Construction and installation of street improvements: Union Avenue - California Avenue
south to Belle Terrace ($61,500).
· Construction and installation of street improvements: Brundage Lane -Chester Avenue east
to Union Avenue ($325,000).
(The attached public hearing notice Amendment No. 4 to the FY Action Plan (2002-2003)
provides additional information on the proposed activities.)
As part of the Citizens Participation Plan, the City encourages public comments and citizen's
views on the proposed actions. Comments may be submitted orally or in writing for a 30 day
period. Written or oral comments will be received by the City Clerks Office in City Hall. Any
person challenging in court the decision made at the conclusion of such public hearing may be
limited to raising only those issues raised at such hearing or in correspondence delivered to the
City of Bakersfield prior to the close of such hearing.
Publish: October 18, 2002
PAMELA A. MCCARTHY, CMC
Clerk of the City of Bakersfield and
Ex-Officio Clerk of the Council
PUBLIC HEARING NOTICE ATTACHMENT
SECTION 108 ACTIVITIES
AMENDMENT NO. 4 TO CITY OF BAKERSFIELD FY 02~03 ACTION PLAN
B-02.MC-06-0510
Available
Project ID Amount (Add) Revised
Project Title & Description Activity Code/ of Budget Total
Citations Funds Changes Funding
Create/Add
;'alifornia Avenue Street Improvement Pro~ect 570203(I) - Acquisition, $0 $413,500 $413,500
Installation of median streetscape, sidewalk and lighting construction, rehabilitation or
~mprovements from Chester Avenue to the railroad tracks (south of installation of public facilities,
Washington Avenue). (Ward 1) ~ublic streets, sidewalks and
other public improvements and
utilities.
Union Avenue Street lmprovement Proiect 570,703(I) Acquisition, $0 $61,500 $61,500
Installation of median streetscape, sidewalk and lighting construction, rehabilitation or
~mprovements from California Avenue to Belle Terrace. installation of public facilities,
(Ward 1) lublic streets, sidewalks and
other public improvements and
utilities.
Brundaqe Lane Street Improvement Proiect 570.703(I) - Acquisition, $0 $325,000 $325,000
Installation of median streetscape, sidewatk and lighting construction, rehabilitation or
~mprovements from Chester Avenue to Union Avenue, installation of public facilities
(Ward1) ~ublic streets, sidewalks and
other public improvements and
utilities.
Publication date - October 18, 2002
S:\DEBBIE'S\FinSeclO8(2)SEBakNotice.doc
CITY OF BAKERSFIELD
SECTION 108 LOAN GUARANTEE
PUBLIC FACILITIES IMPROVEMENTS
LOAN REQUEST
The City of Bakersfield is requesting $800,000 in Section 108 Loan Guarantee funds to
assist with the implementation of a public facility project which will improve the safety and
environment of three key commercial corridors in Southeast Bakersfield. The project site is
located within the City's Southeast Redevelopment Project Area that meets HUD
requirements for activities that address slums or blight on an area basis. Attachment A is a
map showing the location of the proposed project. The Section 108 funds will be specifically
used for the following street improvement project in three locations that is eligible under
construction, reconstruction or installation of public facilities: California Avenue street
improvements from Chester Avenue east to the railroad tracks (south of Washington
Avenue); Union Avenue street improvements from California Avenue south to Belle Terrace;
and Brundage Lane street improvements from Chester Avenue east to Union Avenue. The
City's FY 2002-03 Action Plan was amended November 20, 2002 to include these street
locations as part of the Section 108 public facility project. The Section 108 requested
amount is within the maximum loan amount of five times the City's Block Grant allocation of
$3,180,000 for the 2002-03 program year. It is also under the five year cap when added to
the City's existing and pending approved Section 108 Loans. The Section 108 funds will be
repaid over 20 years.
PROJECT DESCRIPTION~ NATIONAL OBJECTIVE, AND ELIGIBLE ACTIVITIES
The City of Bakersfield has a series of priority needs, as identified in the City's Consolidated
Plan 2005, which will be addressed by the use of these Section 108 funded projects. The
project is being implemented in an area that exhibits social and economic needs. The
southeast public facility project was chosen because of its potential to act as an economic
catalyst in the City's effort to redevelop and revitalize lower income neighborhoods and to
provide needed public improvements for lower income residents.
The following, by project location, identifies the Section 108 funding amounts being
requested, description of the proposed project, national objective, and eligible activity
citation.
Public Facility Improvement
California Avenue, Union Avenue, and Brundage Lane
Amount of Section 108 Funds Requested: $800,000 {California Avenue - $413,500; Union
Avenue - $61,500; Brundage Lane - $325,000).
Proiect Description: The three streets to be improved are located in the Southeast
Bakersfield Redevelopment Project Area and are along major arterials and community
gateways for the southeast residential neighborhood. The 1999 adopted Southeast
Redevelopment Area Plan reflects significant amount of inadequate infrastructure in this
area. The Plan denotes that the lack of adequate public improvements in the Southeast are
a significant causative factor of blight, and that this lack reduces the usability of the land and
its structures for the purposes for which they are intended. One of the objectives for the
Project Area is to upgrade the physical appearance along these arterials. Recent Project
Area commercial and housing improvements, and feedback from southeast community
meetings complement and support the use of these funds for public facility improvements.
The proposed public facility project and its improvements are listed below by street location:
California Avenue - $413,500
· median streetscape (median islands and trees)
· street lighting
· miscellaneous sidewalks/curb and gutter
Union Avenue - $61,500
· street lighting
· miscellaneous sidewalks/curb and gutter
Brundage Lane - $325,000
· median streetscape (median islands and trees)
· street lighting
· miscellaneous sidewalks/curb and gutter
National Obiective: The proposed projects are being implemented under the CDBG national
objective 570.208 (b)(1) - Activities which aid in the prevention or elimination of slums or
blight - Activities to address slums or blight on area basis. The three streets are located in
the Southeast Redevelopment Area that have been approved and adopted by the City
Council in 1999 under State of California redevelopment law. The public improvemenlt'§
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throughout the Project Area are in a general state of deterioration. The proposed
improvements will address the physical conditions that led to the decline of the area by the
addition of median landscape improvements and other related public improvements
(sidewalks, lighting, curb and gutter) which will improve the physical environment and visual
appearance of the Project Area.
Eliqible Activity: The proposed project will be implemented under the following Section 108
eligibility category: 570.703 (I) - Construction, rehabilitation or installation of public facilities,
public streets, sidewalks, and other public site improvements and utilities.
SOURCES AND USES OF PROJECT FUNDING
The project to be funded with Section 108 funds only
resources.
includes public (Section 108)
PROJECT STRUCTURE AND PARTICIPANTS
The City of Bakersfield will be the initial recipient of the Section 108 funds and will be
responsible for the repayment. The City will utilize Public Works, Recreation and Parks and
Economic and Community Development Departments to construct the projects and expend
the Section 108 funds. These departments will be responsible for contracting the work on
the public facility improvements.
REPAYMENT SCHEDULE
The term of the repayment of the Section 108 Loan Guarantee funds is 20 years. The City
will be responsible for the 108 Loan repayments. The repayment will come from the City's
annual CDBG allocation. The spreadsheet included as Attachment B shows the fixed
repayment schedule.
COLLATERAL
The primary source of collateral for the repayment of the $800,000 in Section 108 funds will
be the City's annual CDBG allocation. The secondary source of collateral for the repayment
of the Section 108 funds will be the existing 18th and Eye Street Parking Garage. It is valued
over $4.2 million and is debt free. It contains 545 parking spaces, and is 7 stories located at
the downtown corner of 18th and Eye Street. The demand for downtown parking is great and.
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the City is currently negotiating with a nearby commercial/housing re-use developer for a 20
year lease of 200 parking spaces. In addition, the new ice/aquatic facility, valued at $10 +
million dollars and the City's CDBG Loan Portfolio, valued at $1.2 million dollars will also be
collateralized for Section 108 repayments. Even though the above noted collateral is being
used for a previous $4.1 million Section 108 funding request, the combined value of the
parking structure, new ice/aquatic facility and the CDBG loan portfolio will meet the required
80% loan to value of the total Section 108 funds. The City wishes to reserve the right of
substitution of collateral assets subject to approval by HUD. The City of Bakersfield recently
issued California General Obligation Water Refunding Bonds Series 2002 which were rated
Aa3 by Moody's Investors Services.
PROJECT IMPLEMENTATION
The proposed implementation schedule is as follows:
Street Improvements:
Go to Bid
Start of Construction
Completion of Construction
May, 2003
July, 2003
October, 2003
RELOCATION, DISPLACEMENT AND ACQUISITION COMPLIANCE
No funds will be used for property acquisition and none of these projects will require the
displacement or relocation of any residential unit inhabitants.
CERTIFICATIONS AND CITIZEN PARTICIPATION
The City Council conducted a 30 day advertised public hearing on November 20, 2002,
regarding the Section 108 Application and the amendment to the City's Annual (FY 2002-03)
Action Plan that includes the Section 108 public facility project. On November 20, 2002 the
City Council approved the amendment to the Action Plan and authorized the submittal of the
Section 108 Loan Guarantee Application and adopted the resolution included as Attachment
C. The required program certifications are included as part of the City Council Resolution.
Attachment D is the Amendment Notice and Proof of Publication relating to the public
hearing conducted on Amendment No. 4 to the City's FY 2002/03 Action Plan and on the
Section 108 application.
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CONTACT PERSONS
If you have any questions regarding this proposed Section 108 Loan Guarantee request,
please contact:
Ms. Donna L. Kunz
Economic Development Director
Economic and Community Development Department
515 Truxtun Avenue
Bakersfield, CA 93301
PHONE (661) 326-3765
FAX (661) 328-1548
e-mail: dkunz@ci.bakersfield.ca.us
file:SEbakersfieldsecl08application/NovSec108app doc
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CITY OF BAKERSFIELD
SECTION 108 REPAYMENT
bakersfieldl08repay9
October 24,2002 Fully Amortizing Over 20 Years
Principal and Interest from Annual CDBG Funds
Drawdown Assumptions
May 1,2003 $
Fees
Underwriter $
Legal & Accounting $
Trustee Fees $
Wire Transfer Fees $
Total Fees $
Total $
800,000
Historic costs for fees
4,800 (55 to 60 basis points)
240 ($300 per $1M of notes)
6,000 ($250 to $300 per years in term of repayment)
50 ($50 per draw down event)
11,090
811,090
Repayment Assumptions
Average Interest from August 9, 2002 Public Offering
Principal amortization over 20 years
Interim Interest based on October 24, 2002 3-Month LIBOR plus 20 basis points
Assumed Public Offering Date for Funding
Section 108 Repayment
Fiscal Year
August August February Fiscal Year
Principal Interest Interest Total
Payment Payment Payment Payments
4.76%
2.03%
Ending
Balance
2002-03 (Payment of Fees) $ 11,090
2003-04 $ $ 4,060 $ 19,040 $ $ 800,000
2004-05 $ 24,000 $ 19,040 $ 18,469 $ 61,509 $ 776,000
2005-06 $ 25,000 $ 18,469 $ 17,874 $ 61,343 $ 751,000
2006-07 $ 27,000 $ 17,874 $ 17,231 $ 62,105 $ 724,000
2007-08 $ 28,000 $ 17,231 $ 16,566 $ 61,796 $ 696,000
2008-09 $ 30,000 $ 16,565 $ 15,851 $ 62,416 $ 666,000
2009-10 $ 31,000 $ 15,851 $ 15,113 $ 61,964 $ 635,000
2010-11 $ 33,000 $ 15,113 $ 14,328 $ 62,441 $ 602,000
2011-12 $ 34,000 $ 14,328 $ 13,518 $ 61,846 $ 568,000
2012-13 $ 36,000 $ 13,518 $ 12,662 $ 62,180 $ 532,000
2013-14 $ 38,000 $ 12,662 $ 11,757 $ 62,419 $ 494,000
2014-15 $ 40,000 $ 11,757 $ 10,805 $ 62,562 $ 454,000
2015-16 $ 41,000 $ 10,805 $ 9,829 $ 61,635 $ 413,000
2016-17 $ 43,000 $ 9,829 $ 8,806 $ 61,635 $ 370,000
2017-18 $ 46,000 $ 8,806 $ 7,711 $ 62,517 $ 324,000
2018-19 $ 48,000 $ 7,711 $ 6,569 $ 62,280 $ 276,000
2019-20 $ 50,000 $ 6,569 $ 5,379 $ 61,948 $ 226,000
2020-21 $ 52,000 $ 5,379 $ 4,141 $ 61,520 $ 174,000
2021-22 $ 55,000 $ 4,141 $ 2,832 $ 61,973 $ 119,000
2022-23 $ 58,000 $ 2,832 $ 1,452 $ 62,284 $ 61,000
2023-24 $ 61,000 $ 1,452 $ $ 62,452 $
Total $ 800,000 $ 245,082 $ 229,932 $ 1,240,824