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HomeMy WebLinkAbout09/11/98 BAKERSFIELD CITY MANAGER'S OFFICE MEMORANDUM September 11, 1998 TO: HONORABLE MAYOR AND CITY COUNCIL SUBJECT: GENERAL INFORMATION 1. At the Plaza - The Centennial Foundation instructed us to remove the one art piece where an injury occurred. They are working on finding it a new home. It will be replaced by a shade tree. The big Christmas tree died but was warrantied and will be replaced. The banner poles are in and will go down Truxtun and N. We will first do the logo / banners for the Garden Roadrunners and Condors. 2. At the Arena - Ice is being made; stairs are going in; the bridge concrete work is being finalized, and both N Street and the railroad crossing will be upgraded. 3. On October 7, 1998, staff will be asking the City Council to adopt rules and procedures for the formation of a Project Area Committee for each of proposed new project areas, as well as issuing a call to interested and qualified persons and organizations to participate. The role of the Project Area Committees will be to advise both the City Council and the CDDA in matters relating to policies affecting redevelopment efforts in each respective area, particularly housing policies. The committees represent a real opportunity for community input as the redevelopment plan is being assembled. At the time the Council issues the call for committee formation, staff will issue press releases as well as reaching out directly to community groups in a determined effort to gain the widest possible exposure. 4. An update from EDCD on housing and community development projects during the past quarter is enclosed. 5. Staff has scheduled a public meeting for September 24th for interested residents to discuss the needs in the community and potential HUD funding for FY 1999-2000. A memo is attached from EDCD. Honorable Mayor and City Council September 11, 1998 Page 2 6. Today, the Fire Department made an arrest of a suspect they believe to be the "northeast arsonist". The arrest was the result of an interagency investigation by City, County and federal government agencies. The suspect is being charged with numerous counts of arson. AT:rs cc: Department Heads Pamela McCarthy, City Clerk Trudy Slater, Administrative Analyst BAKERSFIELD Economic and Community Development Department MEMORANDUM September 14, 1998 TO: Jake Wager, Economic Development Director FROM: Vince A. Zaragoza, Principal Planner ~ SUBJECT: Status of Housing and Community Development Activities This memo will serve as an update for the past quarter regarding on-going housing and community development projects. CAPITAL IMPROVEMENT PROJECTS 1. Street Barrier Removal/Reconstruction Improvements Funds in the amount of $57,000 ($15,000 in FY 95-96 and $42,000 in FY 96-97) have been budgeted for reconstruction of existing street barriers for improving pedestrian and traffic flow in the downtown area. The street barrier design complements the design for the Chester Avenue Streetscape Improvement Project. All the street barriers planned for replacement have been replaced except for those located at 20th & H Streets adjacent to the Fox Theater. The original agreement between the City and the Fox Theater was amended on 8/12/98, due to the Fox providing more donated labor and materials reducing the City's costs. Construction is anticipated to begin late September, 1998. 2, Terrace Way Storm Drain Extension Project (Design Only) About $11,000 in CDBG funds have been set aside for design by the Public Works Department. Design consists of about 1,880 1.f. of storm drain pipe on Terrace Way from Union Avenue to Berneta Avenue. Construction is to be funded with non - CDBG funds. Funds have not been identified for construction. The CDBG design funds for this activity were reprogrammed to the Martin Luther King HVAC project by the City Council on July 15, 1998. 3. Lake Street Area Street Reconstruction Project (Phase III & Phase VI) Approximately $122,000 of FY 95-96 and $113,000 of FY 97-98 funds are available to reconstruct Lake Street from Owens Street to Williams Street. The reconstruction includes 2,275___ lineal feet of Lake Street. Total reconstruction improvements will also include the installation of approximately 6,550 lineal feet of curb and gutter. The project F ECE VED C:\98sepQTly.WPD 1 , ~!'D" ,--, ' was completed on August 14, 1998. 4. Lake Street Area Reconstruction Project (Phase IV) Installation of 1,550 +/- lineal feet of in-fill curb and gutter with 775 +/- lineal feet of street reconstruction along Lake Street between Beale Avenue and Owens Street. The budget for this activity is approximately $110,000. The project was completed on August 14, 1998. Two more phases are remaining. 5. Union Ave. #10 Area Water Main and Fire ttydrant Upgrade Improvement Project Design and construction of 7,000+ 1.f. of water line in the Union #10 Area Annexation. Improvements to be owned and operated by Cai-Water. Project agreement was executed by the Council in December, 1996. The lead responsibilities for this project were transferred from the Water Department to the Public Works Department last year. The project is out to bid for a second time. Bids to be opened on September 15, 1998. Construction estimated to start by late October and be completed by early December, 1998. The City' s budget is approximately $512,170 (FY 95-96 - $298,000; FY 96-97 - $214,170). 6. Martin Luther King Jr. Communi~_ Center Parking Lot Project Approximately $71,551 has been budgeted to reconstruct, and to enlarge the parking lot at the MLK Center. Outdoor parking lot lighting is to be installed during construction. The construction contract was sent to the contractor on April 21, 1998. Construction was delayed until outside agencies relocated the over head utilities. The utilities were relocated during the week of August 24, 1998. Construction should start in mid September and be finished in early November, 1998. 7. Bakersfield Ci~_ Council Chamber ADA Improvement Project Approximately $85,000 in CDBG funds have been set aside for handicapped improvements to the council chamber. A Request For Qualifications was prepared. Construction to be completed in September, 1998. Total estimated project cost is about $177,000. 8. Chester Avenue Streetscape Improvement Project Approximately $332,000 in FY 96-97 and $336,000 in FY 97-98 CDBG funds have been earmarked for streetscape improvements within the public right-of-way along Chester Avenue between Truxtun Avenue and 23rd Street. An additional $1.5 + million in Federal, State and local funds were used to construct the improvements. Construction was completed on May 13, 1998. 9. Neighborhood Street Lighting Improvement Project (PH H) Upgrading of existing street lights to City standards and the placement of new street lights and poles to existing residential streets (non commercial in an area bounded by East California on the north, the Southern Pacific RR tracks on the east and on the south and C:\98sepQTly. WPD 2 Lakeview Avenue on the west). The project is being designed by PG&E. Design' is anticipated to be completed by November, 1998. Installation is expected to start in January and be completed in June, 1999. Approximately $52,000 has been budgeted for this activity. 10. Chester Avenue #3 Annexation Street Improvement Project Approximately $100,000 was budgeted for street improvements for this area in FY 1997- 98. Street lights were installed in October, 1997. Remaining funds will be used for designing a water system upgrade and improving fire protection. Cai-Water Company is preparing a cost estimate. A project agreement is estimated to be concluded by late October, 1998. The Public Works Department is the lead agency. Construction is scheduled to begin in the Spring of 1999. 11. Casa Loma #6 Annexation Street Improvement Project Approximately $110,250 has been budgeted for street improvements for this area in FY 1997-98. Installation of street light upgrade project is 25 % completed, with a scheduled completion date of January, 1999. Design for storm drains and curbs and gutters started in late January with an anticipated completion by fall of 1998. 12. Casa Loma #6 Fire Hydrant and Water System Improvement Project Funds in the amount of $189,750 (FY 1997-98) for design and construction of fire hydrant installation and water line upgrade have been budgeted for this project. Design will begin after approval of a project agreement between City and Cai-Water Company. Cal-Water Company is preparing a cost estimate. A project agreement is estimated to be concluded by late October, 1998. The Public Works Department is the lead agency. Construction is scheduled to begin in the Spring of 1999. NON-PROFIT/PUBLIC FACILITY PROJECTS Economic and Community Development staff is assisting the following various non-profit organizations to acquire or improve their facilities. 1. Kern Count_ Economic Opportuni~_ Co~_ oration (KCEOC) KCEOC is a designated Community Housing Development Organization (CHDO) under the HOME Program guidelines. KCEOC is using $33,000 of CHDO allocations to purchase HUD repo properties; they are using the HUD 203K program to rehabilitate the properties. The houses will be sold to low income first time homebuyers. KCEOC identified four properties to purchase at below market value, rehabilitate, and sell to low income first time homebuyers (2619 University Ave; 3904 Edith Lane; 3013 Agate and 3100 Occidental). Approximately 25 % of the 203K loan amount will be used to cover rehabilitation costs. The properties have been rehabilitated and they are being marketed currently. KCEOC is pre-screening prospective buyers. KCEOC will reimburse the City's down payment assistance when the properties are sold. C:\98sepQTly. WPD 3 2. Golden Empire Gleaners Rehabilitation Improvement Project Approximately $340,000 in FY 96r97 funds have been earmarked for rehabilitating a 37,033 sq.ft, facility at 3100 Chester Avenue into administrative offices and a food distribution warehouse. The County provided acquisition assistance for the Gleaner's new facility as well as a portion of the rehabilitation costs. An architect has been chosen and the design work is underway. The project should go out to bid in early Fall, 1998. 3. Clinica Sierra Vista Communi~_ Services Center Site Acquisition Clinica Sierra Vista (CSV) is proposing to use approximately $286,900 in CDBG funds to acquire property (700 block of East California Avenue) and pay for permit fees. CSV will use other funds to then develop an urgent care drop-in facility. Acquisition was completed April 30, 1998. CSV has one year to begin construction. Financing plan from CSV is pending. 4. Center for the Blind and Visually Impaired Facility Rehabilitation The 1997-98 budget allocated $58,000 for a portion of the costs of rehabilitating the Baker Street facility. Council approved the agreement in April, 1998. All bids were rejected in June; the project is being redesigned. In the meantime, the Center is using its own funds to complete a portion of the work. The project should be ready for re-bid in October, 1998. 5. Bakersfield Homeless Center Last November City Council approved an agreement with Bethany Services (d.b.a Bakersfield Homeless Center) for operation and services at the facility using $47,125 in Emergency Shelter Grant (ESG) funds. These funds will be used to support operation and maintenance costs of the center as well as the expansion of child care services over a twelve-month period. Project is on-going. 6. Alliance Against Family Violence Last November City Council approved an agreement with the Alliance for operation, essential services and homeless prevention at their shelter site using $24,125 in Emergency Shelter Grant (ESG) funds. These funds will be used to support homeless services and facility maintenance over a twelve-month period. Project is on-going. NEIGHBORHOOD REVITALIZATION AND HOUSING 1. First Time Home Buyers Program This program continues to smoothly process loans for first time home buyers. Up to $3,500 per applicant is provided in the form of a no interest, no monthly payment loan for use toward the down payment and non-recurring closing costs associated with the C:\98sepQTIy. WPD 4 acquisition. The loan is repayable in full at the time the borrower sells the residence. The average turn around time from the date the file is accepted and the funds released has been consistently less than 14 days. A database tracking program has been set up, which allows staff to quickly access information pertaining to the FTHB loan such as name of borrower, name of lender, address, loan amount, and census tract. FY 97-98 has approximately $325,000 in HOME funds allocated for this program, in addition $265,000 dollars in CDDA set-aside has been earmarked for use in the program. About 607 households have benefitted from this program. Since July 1 of this year, 182 loans have been made and $255,163 has been expended. This has leveraged about $12,740,000 in CDDA and HOME funds, (about $38 million since inception of the program). 2. Looking Good Neighborhood (LGN} Program. The LGN Program for C.T.'s 13, 15, 21 and 22 is for general public service activities such as clean-up days, public health awareness, educational campaigns and an annual neighborhood awareness festival. The Good Neighbor Festival is scheduled for October 10, 1998. This will be the third year that coordination of the event was handled by the Bakersfield African-American Cultural Association. Staff will continue to participate as a member of the Good Neighbor Festival committee. 3. Multi-family and Single Rehabilitation Projects The proposed changes from the previous report have been implemented. During this past quarter, rehabilitation staff completed five single family rehabilitation projects; three rehabilitation projects are in various stages of construction, and 11 applications are under review for approval. Eight rehabilitation applications have been received; seven scope of work plans have been completed by rehabilitation staff, and eight scope of work plans are currently in progress. The Multi-Family (MF) Rehabilitation program has received one application for funding consideration. The property is located at 2300 South Union Avenue. The applicant is requesting $60,000 to pay for building permit fees and some off-site improvements. The applicant has received confirmation that a Shelter Plus Care Grant was approved for approximately $1.3 million. In an attempt to enhance the multi-family rehabilitation program, staff put out an RFP for an interest subsidy program. The responding proposals RFP did not meet staff's expectation, so all proposals were refused. Staff is re-thinking its approach to multi-family rehabilitation funding. Another RFP or some other type of solicitation will be issued when a better solution has been formulated. 4. Home Accessibili~_ Program Community Development Division received 12 requests for assistance through the Home Accessibility Program this quarter. Ten disabled clients were assisted, and staff is working on another 14 applications. Public demand for this program continues to be high. C:\98sepQTly. WPD 5 5. Housing Rehabilitation Marketing Staff received approximately 25 inquiries about our various programs and mailed that many applications for assistance to our potential clients. 6. URM Incentive Pro,ram As of last month under the incentive program, 31 applicants have been granted funds for a total of about $137,364. There have been 42 commercial owners of unreinforced property who have been given consent to proceed with their project. Of those, twenty- eight are retrofit projects with three scheduled demolitions. At this time, we are processing an additional 16 applications for URM assistance. These applications represent properties that have either applied or have completed environmental review and are currently awaiting their initial seismic study from their engineer. 7. Business Assistance Program Marketing efforts continue for the CDBG Jobs Funds. An agreement was prepared between the City and the Step2 Company for $150,000 in f'mancial assistance to purchase equipment. The company will create 180 new jobs over the next three years. The company recently began manufacturing a line of plastic toys and home products. Staff is currently working with two companies (Stier's RV, Pleasant Travel Services) to provide assistance for purchasing equipment or paying permit fees. Up to 240 jobs will be created or retained. 8. Fair Housing The City Fair Housing Program has compiled fiscal year end statistics from monthly fair housing reports which indicate that 1,020 calls were received on the fair housing hotline, resulting in 33 cases and 20 tests. Over fifty-percent of the inquires and complaints contained allegations of discrimination involving race, color or national origin. Other frequent housing discrimination complaints and inquires to the Fair Housing Hotline include those based on disability and familial status. A comparative analysis between fiscal year 1996-1997 and fiscal year 1997-1998 indicates the following: · The total number of calls on the fair housing hotline have decreased over the past fiscal year by some twenty-five percent. In addition, the total number of discrimination claims have also decreased. · However, fifty-percent of all discrimination complaints remain based on allegations of race, almost always involving white and black parties to a complaint. · Complaints stemming from persons with disabilities have noticeably surged from only two-percent of all complaints last fiscal year to sixteen-percent of all complaints during FY 1997-98. C:\98sepQTIy.WPD 6 Familial status cases have substantially declined from twenty-nine percent of all complaints in FY 1996-97 to only thirteen-percent of all complaints this past fiscal year. Twenty tests were performed during investigations or conciliation agreement monitoring. Further, the fair housing hotline has attained greater caller diversity in that almost an equal number of callers described themselves as either white, black or Latino. Because a large number of complaints were received during fiscal year 1996-97 involving overly restrictive rules regarding children, maximum occupancy limits and other policies directed at children, a heavy emphasis was placed on educating housing providers as to issues regarding familial status during fiscal year 1997-98. The success of this educational campaign is reflected in the significant decrease in familial status complaints and overall decline in hotline calls. A similar phenomenon seems to be occurring with regard to persons with disabilities. Again, the fair housing office is confronting this trend by actively providing training opportunities concerning accessibility, reasonable accommodation and reasonable modification issues. Consistent with past years, this fiscal year has shown that an evenly proportionate number of cases were informally resolved as were referred to administrative legal proceedings and prosecution under fair housing laws and other related acts. Past accomplishments indicate that the fair housing program is fulfilling its mission as an objective, neutral agency charged with reconciling allegations of housing discrimination. 9. California Rural Home Program This program provides three distinct forms of assistance. Rural Gold, a 7.265 % fixed rate first mortgage loan. Access, a down payment and closing cost second mortgage for up to 5% of the purchase price, repayment is made over 20 years at the first mortgage's interest rate. Lease Purchase, a 3 year lease which converts to home ownership, thus allowing home buyers with recent financial problems a period of time to correct/resolve and still lock in at the current markets interest rate. The program as a whole has been a success, as anticipated. The fiscal year totals; 79 Rural Gold loans were made for a total of $5,493,287.00. 85 Access loans for $255,000. Lease purchase is not completely in place as of this date but should be available for FY 98-99. 10. Commercial Facade Grant Program An application has been received from the owner of the Howell House on Baker Street. It is anticipated that $10,000 of the remaining $19,000 will be utilized for this project. Environmental clearance was not completed at then end of June due to delays from the State Historic Preservation Officer review. The project will be going forward in early Fall. C:\98sepQTly. WPD 7 I1. Enterprise Zone Marketing/Training The City, County, Employers' Training Resource (ETR) and Kern Economic Development Corporation continue to market the Enterprise Zone. An agreement between the agencies sets out the duties and responsibilities of each organization in marketing the Enterprise Zone. City and County each contribute one-half of the funding for the $18,000 agreement that extends through June 30, 1998. A majority of the funds goes towards ETR to provide assistance in employee vouchering, job training, and employee referral services. An agreement and budget is currently being finalized for FY 1998-99. 12. Self Help Enterprise (SHE) Home Acquisition Project SHE, as a designated CHDO, used approximately $238,650 in HOME funds to acquire ten single family residential lots. The purchase was completed in November, 1996. SHE has selected 10 low-income families who qualified as first time homebuyers to assist in the construction of their own homes under the Self Help program guidelines. Each applicant is estimated to give approximately 1,200 hours of volunteer labor and will be supervised under the direction of SHE managers. Construction is underway with the project expected to be completed by January, 1999. 13. Restoration Communi~_ Project, Inc. (RCPI) RCPI's proposal is to acquire a single-family home and rehabilitate the facility for use in conjunction with adjacent property (formerly known as the Friese Maternity Home) for use as a transitional housing project. About $130,000 has been set aside for this project. The facility will house women and their children as they recover from substance abuse and gain the skills to be self-sufficient. Kern County is also contributing to this project. All funding necessary to complete the project has been obtained. Construction began in July, 1998 with a 90-120 day completion time table. 14. New Construction Assistance The FY 96-97 budget has earmarked about $116,000 for housing development assistance for construction of affordable housing. Currently, staff has identified about eight vacant lots that are being offered in a public tax delinquent sale by the County. On August 21, 1996 the Council approved a request that the County withdraw these sites from the tax sale in order for the City to make an offer to purchase them for future housing development. Two affordable housing developers have agreed to participate. Transfer of the title on five of the properties was completed in September, 1997. Construction of the first unit is underway, with completion expected by Summer, 1998. 15. Ci~_ 's Sewer Connection Fee Loan Program A zero interest loan program was designed to encourage low income residents to hook up to the newly constructed sewer. The program offers a five year, no interest loan to low income homeowners to pay the fees associated with sewer hookup. If the homeowner applies, and receives a home improvement loan the sewer hookup fees will become a grant. The current budget is approximately $100,000. C:\98sepQTIy. WPD 8 A citizen's brochure for this program has been developed and distributed to interested residents. This program was initiated in 1997 in the Panama 10 annexation area and notification letters, brochures and applications were sent to all property owners who had not made application to hook up to the City sewer system (54 properties). Of the 54 property owners contacted, four property owners expressed interest in the loan. To date, none of the interested parties has utilized the loan program. 16. FY 1997-98 Consolidated Annual Performance and Evaluation (CAPER.) Report CD Staff is preparing the FY 97-98 CAPER. The CAPER identifies the level of progress and accomplishments in meeting priorities (goals) and objectives of the City's Consolidated Plan which is a five year strategic planning document (1995 to 2000). It reflects accomplishment and expenditure information for housing and community development projects occurring within the City last fiscal year. For FY 1997-98, the City's entitlement expenditures amounted to approximately $3,889,551 from three federal programs: CDBG- $3,173,551; HOME- $676,000; ESG- $40,000. In addition to entitlement expenditures last fiscal year, over $15 million was leveraged from non-City HUD funds. The public comment period to review the draft CAPER is scheduled for September 10 to September 25. Copies are available at the City Clerk's office, EDCD, CSUB, and various County libraries. The deadline to HUD for a final CAPER is September 29, 1998. C:\98sepQTly.WPD 9 09/11/98 FR1 13:12 FAX 805 328 1548 BFLD ECON & COMM DEV 444 CITY MGRS OFFICE ~001 B'A K E R S F I E L D Economic and Community Development Department MEMORANDUM September 11, 1998 TO: Alan Tandy City Manager FROM: Jake Wager Economic Development Directo SUBJECT: FY 1999-2000 Public Meeting Staff has scheduled a public meeting on September 24 (Thursday) at 5:30 P.M. (Truxtun Room, Convention Center) for interested residents to discuss the needs in the community and potential HUD funding for next year. Some topics we will be covering include eligible activities, prior year performance, available funds for next year, applications process, and tentative timeline. This will be our fifth and final planning year for the Consolidated Plan 2000. The results of the public meeting will guide us in developing the FY 1999-2000 Action Plan. On'the same day and location a non-profit'appliCation workshop has also been scheduled at 3:00 P.M. Over two hundred flyers were mailed to agencies informing them of the opportunity to attend and ask staff questions regarding the CDBG/HOME/ESG application process. Feel' free to contact me if you have any questions. file:s:\vz I FY1999CP.wpd IC!TY MANAG ER,'SOFFIC::" ,"i: