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HomeMy WebLinkAboutSeptember 17, 2002M f 1! O - WO"T STAFF REPORT Fire Department September 17, 2002 TO: Mayor and City Council FROM: David R. Lugo, Fire Chief A,6(11 Prepared by:' Richard Brown, Battalion Chief SUBJECT: PURCHASE OF CAMERA EQUIPMENT FOR THE FIRE DEPARTMENT RECOMMENDATION: APPROVE THE PURCHASE OF THREE BULLARD T -3 THERMAL IMAGING CAMERAS IN THE AMOUNT OF $31,825.50 FROM L.N. CURTIS AND SONS FOR FIRE DEPARTMENT ENGINE COMPANIES SUMMARY Funding for three thermal imaging cameras was provided for in the 2002 -2003 Equipment Acquisition Fund. The purpose of this Staff Report is to obtain Council Approval for the purchase of camera equipment for the Fire Department. Staff recommends that the City Council authorize the purchase of three Bullard T -3 thermal imaging cameras from L.N. Curtis and Sons, in the amount of $31,825.50. BACKGROUND Thermal imaging cameras are used by firefighters to assist in searching smoke filled areas for victims, locating hidden fire behind walls and ceilings, and finding overheated electrical boxes without damaging walls. Prior to the use of these cameras, firefighters would have to search a building room by room in blinding smoke to locate victims. These cameras allow the firefighter to literally see through the smoke and rapidly locate victims overcome by smoke. A major task at all fires is the rapid deployment of a search and rescue team to determine if anyone is trapped or overcome by smoke inside a building. Their task is to quickly and systematically search the building and remove any victims to safety. The use of thermal imaging cameras dramatically reduces the time searching for victims by cutting through the smoke. The camera uses inferred technology, similar to night vision goggles used by the military. The operator can hold the camera in one hand and "sweep" the room and determine by the heat signature, if anyone is inside the room. LASER IMAGED of Mayor and City Council September 17, 2002 Page 2 of 2 DISCUSSION Currently, the Fire Department carries two larger thermal imaging cameras on the Truck Company and the Battalion Chief s vehicle, as they are assigned to all structure fire incidents in the City. The Bullard T -3 cameras are smaller in size than the two currently in use, thanks to new technology. The smaller size will facilitate the rapid deployment of the camera by the first arriving company. There will be no waiting for the camera to arrive to deploy it. The original two cameras will be retained for use as backup equipment. Formal bids were requested and obtained from three qualified vendors in accordance with City purchasing procedures. L.N. Curtis and Sons was the lowest qualified bidder. FISCAL IMPACT Funding for the thermal imaging cameras is provided for in the 2002 -2003 Equipment Acquisition Fund. RECOMMENDATION It is recommended that the City Council award the purchase of the three Bullard T -3 Thermal Imaging Cameras to L.N. Curtis and Sons, in the amount of $31,825.50. DRL:rcb Approved: William R. Kelly, City Manager Q 3 s'�A —GO 10 OR AT Sl) STAFF REPORT Arcadia Public Library September 17, 2002 TO: Mayor and City Council FROM: Janet Sporleder, City Librarian SUBJECT: Acceptance: Monetary gift of $6,795 from the Arcadia Public Library Foundation to the Library for furniture, programs and materials. Recommendation: Accept the donation from the Arcadia Public Library Foundation Summarv: The Arcadia Public Library Foundation, as part of its ongoing mission to support the Library's goals and objectives, is donating a total of 56,795. The funds will be used to purchase library materials, support programming in the Children's Room and reupholster furniture in the Children's Room. Discussion: The Arcadia Public Library Foundation continues to provide support for the programs and services of the Arcadia Public Library by soliciting donations and applying for grants. The current donation, totaling 56,795, has three components: • A grant for $ 1,000 from the Oak Tree Foundation was awarded to the .Arcadia Public Library Foundation for the purchase of materials for the literacy and English -as -a- second - language collections. • Donations totaling $2,500 were made to the Arcadia Public Library Foundation that specified the funds are to be spent in support of the Children's Summer Reading Program. • Furniture in the Children's Room that was purchased by the Arcadia Public Library Foundation in 1995 is in need of reupholstering. $3,295 has been designated to complete this project. All gifts to the Library are subject to approval by the City Council pursuant to City Charter article VIII section 809 (d). Fiscal Impact: The Library will experience an added $6,795 to its budget allocation. LASER IMAGED Recommendation: $6,795 donation to Foundation. Approved by: A ET It is recommended that the City Council approve the receipt of the the Arcadia Public Library from the Arcadia Public Library William R. Kelly, City Manager 2 Ex 3 W::M2 September 17, 2002 TO: Mayor and City Council FROM: Janet Sporleder, City Librarian w STAFF REPORT Arcadia Public Library SUBJECT: Acceptance: Monetary Qift of 56,795 from the Arcadia Public Library Foundation to the Library for furniture, programs and materials. Recommendation: Accept the donation from the Arcadia Public Library Foundation Summarv: The Arcadia Public Library Foundation, as part of its ongoing mission to support the Library's goals and objectives, is donating a total of 56,795. The funds will be used to purchase library materials, support programming in the Children's Room and reupholster furniture in the Children's Room. Discussion: The Arcadia Public Library Foundation continues to provide support for the programs and services of the Arcadia Public Library by soliciting donations and applying for grants. The current donation, totaling 56,795, has three components: • A grant for 51,000 from the Oak Tree Foundation was awarded to the Arcadia Public Library Foundation for the purchase of materials for the literacy and English -as -a- second - language collections. • Donations totaling 52,500 were made to the Arcadia Public Library Foundation that specified the funds are to be spent in support of the Children's Summer Reading Program. • Furniture in the Children's Room that was purchased by the Arcadia Public Library Foundation in 1995 is in need of reupholstering. $3,295 has been designated to complete this project. All gifts to the Library are subject to approval by the City Council pursuant to City Charter article VIII section S09 (d). Fiscal Impact: The Library will experience an added $6,795 to its budget allocation. LASER IMAGED Recommendation: $6,795 donation to Foundation. Approved by M M It is recommended that the City Council approve the receipt of the the Arcadia Public Library from the Arcadia Public Library William R. Kelly, City Manager G _A 07 a/�%wily,// OP � � 6 ARM IA • d�\41�p3 ge-PonATS9 STAFF REPORT Development Services Department DATE: September 17, 2002 TO: Mayor and City Council sip FROM: Don Penman, Assistant City Manager/Development Services Director'' Philip A. Wray, City Engineer/Engineering Services Administrator By: Dan A. Lazo, Associate Civil Engineer Reviewed By: Jan Steese, Purchasing Officer SUBJECT: Award of contract— Relocation of Hugo Reid Family Statue Recommendation: Authorize the City Manager to enter into a contract with American Heavy Moving.& Rigging, Inc. in the amount of$57,362 SUMMARY The City Council, in the Capital Improvement Program Budget (02-03) approved funding to relocate the Hugo Reid Family Statue from Arcadia County Park to the Ruth and Charles Gilb Historical Museum site. A location map of the project is attached for reference. The project was advertised and bids were opened on September 3, 2002. American Heavy Moving & Rigging, Inc. submitted the only bid in the amount of$57,362.00. Staff recommends that the City Council award a contract for the Relocation of Hugo Reid Family Statue to American Heavy Moving & Rigging, Inc. DISCUSSION The Hugo Reid Family Statue is currently located in the Arcadia County Park, directly north of the swimming pools. The County of Los Angeles has donated the statue to the City of Arcadia at no cost, other than that to remove it from County property and restore the existing site to an acceptable level. The statue will be placed in between the newly constructed "Ruth and Charles Gilb Arcadia Historical Museum" and the Community Center. The project consists of removing the statue, transporting it through the park and public streets to the museum site and placing it in the ground at the same depth at which it exists currently. The project will not include any restoration work on the statue. The work is expected to take one week to complete. The contractor is required to obtain insurance to protect the statue from damage during the move. In the event of a crack or 9 LASER IMAGED Staff Report Award Contract for Relocation of Hugo Reid Family Statue September 17, 2002 Page 2 break in the statue, the damage will be 'evaluated by the City to determine if repair or replacement is appropriate. The contractor is also required to restore all damages caused by the move, such as broken curbs and sidewalk, and fill in the hole at the removal site. Several months ago, staff contacted several moving companies 'to inquire about relocating the statue. Estimates were, given from two companies in the amount of $57,000 and $65,000. The project was formally advertised for bids on August 16, 2002. Three (3) prospective contractors received plans and specifications and one (1) qualified bid was received in the amount of$57,362 from American Heavy Moving & Rigging, Inc. Staff has reviewed the bid documents for content, and has investigated the contractor's background and recent projects for competency. Staff has determined that American Heavy Moving & Rigging, Inc. can satisfactorily perform the required work and their bid is reasonable and within budget. ENVIRONMENTAL ANALYSIS The project is categorically exempt per Section 15301 class 1(d) from the requirements of California Environmental Quality Act (CEQA). FISCAL IMPACT ' Funds have been approved in the 2002/03 Capital Improvement Program (CIP) for the relocation of the Hugo Reid Family Statue in the amount of $66,000. Funds are available to cover the contract cost, engineering, inspections and contingencies. RECOMMENDATION ' That the City Council authorize the City Manager to enter into a contract with American Heavy Moving & Rigging, Inc. in the amount $57,362 for the relocation of Hugo Reid Family Statue. ' Approved By: WILLIAM R. KELLY, CITY MANAGER PAW:DP:pa ' Attachment . i f HUNTINGTON DR. (E/8) • w_ _ • w ANL INV ° �t 11W illl t)-.. viii: JI • I. . 1 Oa .\ \ \=,..\ _.,-;, el a I j:\olo o o l e o l e I ° 0 cC S.H� - - -f o �, - . • • • G�--- — ---r ARCAD A HISTORIC�AC 1�S�UM s.H L_ I 1 VN 0_1„A E VNE . 0 1 . 0 • , (0_, O O ° ,`O _ / / ■ 0 _ . ____ ,- PROPOSED LOCATION OF THE STATUE CITY OF ARCADIA DATE: 8-02 ApiNli op t. RELOCATION OF HUGO,REID FAMILY STATUE BY: DL (ljO4' c:fil •'J�i���` CHK'D BY: �� �'' !;° •' ; `"7 SCALE: DRAWING NO. E J CO\ia-•• 1' = 500' _ DEVELOPMENT SERVICES DEPT. LOCATION MAP ENGINEERING DIVISION lJ •anee �._s: C 44M/a.4.17 0 ARCADIA � STAFF REPORT Rl'08ATE9 Development Services Departme t September 17, 2002 TO: Mayor and City Council FROM: Don Penman, Assistant City Manager/Development Services Director By: Pete Kinnahan, Economic Development Administrator SUBJECT: Report - Habitat for Humanity Housing in Arcadia DISCUSSION The City Council at the June 18, 2002 Study Session directed staff to place on a regular City Council agenda an item regarding Habitat for-Humanity housing. Attached for your review are: 1) a brochure dated 10/9/01 prepared by the San Gabriel Valley Habitat for Humanity office in Pasadena, 2) a memorandum dated November 30, 2000 from the Redevelopment Agency's consultant, Kathleen Head of Keyser Marson Associates. Both of these are excellent summaries of the purpose and goals of Habitat, as well as some practical considerations for a possible Habitat development in Arcadia. At the meeting, staff will present a brief Powerpoint presentation showing the Habitat projects in Duarte, El Monte, Pasadena and Glendale. A representative of the Board of Directors of the San Gabriel Valley Habitat, has been asked to make a :rief presentation to the City Council to respond to any questions you may have. FISCAL IMPACT The Redevelopment Agency has Housing Set Aside Funds which can be used for assisting a Habitat project. RECOMMENDATION That the City Council provide direction regarding a possible Habitat for Humanity development in Arcadia. Approved: William R. Kelly, City Manager • Attachments LASER IMAGED 67,\Sii(■. g"4 ., • We Build Homes With Our Hands... .. Hope With Our Hearts' iamiluk We,.. v .J r� w S7 ; a. 3 ;°wol ,.,„,,.,, A.O. .ar. $ ttP , n:�s1 : 3 %n. i:3<.� , vn"tC ; ,F 3 . _ t, Z 40,0,4-� ti , R r l F ti tr S u tiv P l ei t } Ae hrac ti MMO tex rte' YnY{ T 5 -fir Y a • PST r• !'I bkAt 2ctiV. ,4•s 4� r t1 ti L4';' flr.f .' Witt ,r.-.E 1 Ctl'+`'Y S't1 L �, 3iY `lS i :r...' ' --..?"''.4 3.t,, .. .., .-:. ,, ?til' ......,,.) 9Jr. .,.. 1`` it ,,,*`F�i• ii'1 4k •f.. :'4y ,.✓# �-�F ryt 01, l''`t°v:2�p's'�` • }kfr.tt.^ ki ,:ii,,,y1s.7G 't: ;11 -rtr . Ty j 06-- {t . 44�[T f • San Gabriel Valley Habitat for Humanity •• . 789 North Altadena Drive • Pasadena, California'91107, Phone: (626) 398-9371 . Fax (626) 398-1961 ... . •Cese3-10/09/01 www.sgvhabitat.org , • • - sgvhfh @jps.net . ATTACHMENT 1 Since 1989,,SGVHFH has built 29 1:,...__A in the San Gabriel Valley(Glendale, Pi :na, El Monte and Duarte): ., • To date, 143 men,,women and children have become Habitat homeowners. . •• Our first hOnie(and the first Habitat home built in Los Angeles County)was built in Pasadena on Maple Street on land directly purchased by the affiliate.However,land acquisition is costly, so•SGVHFH works closely.with city and county inuniCipalitiei'to obtain fiuidS frit land in Order to keep our homes at affordable levels. We have been fortunate to receive substantial finding for land acquisition and offsite'Costs. Such funding assistance s a vital part of our partnering strategy. •.•• • ., .r , , ..- ,:::.••,••............,,,•:•. -.:.: , • Ou inest eintent biulding'ptOject is three honies in Glendale, located at • '•:!!•':::: 1...."••••'. -• ..::::•:,' ....;•,„ 1830 Gardena Avenue. We also are actively searching for more land and a ... "i,...i.t&ti.: ':,,F'.-.., • . • rehabilitation project. .,„ , • ,, V, , r = . :,.,. .•........• .."...•..::.........'.. IPA''-:-.- _.,,4,12; .'-':: ":' 'Our service area is made up ofthe.28 communities in the San Gabriel Valley, ) 4,i!1, V 4MTP"10-66i....,,,,,J.L. ,., .,... .bounded..4.-_-.-:.. „,,i,,,,4..,..-.,i.,,,:4 ,59n:-. ' bound on the nOrthby the San:Gabriel'Mountaini, south by the Pomona „4::::•7::?..47:T.:'. 1K4.40;:;W: , .7.1Y.,:_fi,...„;4.,..20.,,,,,,1:400.hagit•iit,•:fd. Freeway(60),west by Glendale/Burbank western•border, and on the east 1 •-•''''''4.;;;11. ''''''''' ':11°'n.q.."'-:'':'''Itii24".115-:‘ by the San Gabriel Freeway(605). .. ., , . . „, . - • ‘, • : ,, - HABITAT FOR HUMANITY INTERNATIONAL - - Founded in 1976 by Millard and Linda Fuller, Habitat for Humanity International(HFHI)is a nonprofit, ecumenical faith-based ministry dedicated to eliminating substandard housing worldwide. This mission is met by providing homeownership opportunities to families that otherwise 0914d not afford them and by raising 5•• •,: •••, .• community awareness that shelter must be'a matter of conscience and action. • Habitat's traditional apprOaCh includes: '••- , , -., :n-,•• •,,..:.„. • •partnering4itli'fain-ilieSliii need of better housing who demonstrate a willingness to commit to the long-range terms of sweat equity and mortgage repayments, - '. ,::,• . •building houses witli•no interest and no'ptofit; • encouraging homeowner participation at every level of the building or renovation process; •invOlVing VOlinittieri iiihOtheOwner selection and mentoring, along with development, fundraising, construCtiOn, adininistfatiOn and related program areas; •-creating a mortgage with an affordable pay:Meat schedule fot the families involved; •recycling homeowners' mOrtgagepayinerits into a construction fimd;thereby enabling assistance:to additional families. • . ,, • ,, In 1982,the Fullers asked President and Mit.Jimmy Carter to volunteer forifFHI: As a tesult of their committed and sincere personal involireinent, Habitat't national visibility grew and sparked interest in HalitaVs work across the nation. Since 1976, HFHI and its affiliates have constructed more than 100,000 houses w rid- wide. As a result, an estimated 400,000 people now are living in safe, decent homes. This success has been accomplished through the work of more than 1,600 affiliates in the United States and in 76 countries worldwide. _ _ .,•:. 4 . . • . , .-I:N.0061:Pag;;i',:••i•Q:::i•i;:;trallififf,.. , :.• , : -4'942:03.14,1f;:s;§:1,,i,;,.:::.;::::?,:..i.:C'::V•irVitt?tt 47.4..4...,-'''P..•::".;.••••••'::;::.44,;- . • 0:4; A.....: --.":-:,-'.- ,'".- 4.:. 1;:,,t,....y: ,- - • ,i.. --,:-., , Z!:::-)::--_.n..1 . . ,...,,,I,,..:.•;;:;•iit,, -.F:'".....:47.-1-'-' ' !:•:::.;:l.r.,10‘C...,.:...,..., .'"5:.:: :t"-. 1., ,- ::::;,. ---:x:i..,'.-:=F:-:-:.;.-::- .i•:::1'f',,...,':.:!.".1*-'-•::',:.,'.4:::4;:i.'': • , - , c- - -,.. ... : '''''.:;.;:::::Y..;:ii,':::::;..::::::-:.,:-....:::•-.....A.-1.i, . - - .-; , .: ,- , , . - ..,,,,,i.2k..:.-:,•:::::;-,...:!....:,,.::::::Ja.,,•:;:i:::h.,...,...: .-t-.,-.1-i...:, ,:•..1 '..• .. ....., :1. - , ' •.' ., ,:i ''..=.1...:.:','S::..fa(!;ii.illi,i-.1.&!.. •`, ,,,,...9... ... ..,. . 1----\=i STRATEGIC' OBJECTIvtS SGVHFH realizes that it must adopt a strong course of action in order to eliminate poverty housing in the Ian Gabriel Valley. Land availability remains a critical issue. In order to make an impact in our geographic service area, it is imperative that we increase the number of homes built. Consequently, the SGVHFH Board of Directors has adopted the following objectives: • To build 12 new homes and two rehabs between 2002-2003 • Raising$2 million in a combination of cash, government funds and donated building materials, with a minimum of$500,000 by July 2002 • To acquire three to five additional building sites by Fall 2002 ;� ?-. • To acquire two rehab project sites by Spring 2002 4'rF n,�,4 • The Board has concluded that to reach our building goals, our affiliate may be r,,— .' gg Y r.�t ' '4,44,. building in two different locations simultaneously.' Consequently, it is anticipated , 5 . ,p i : A that the affiliate will hire•two part-tune construction managers. , ss7 ., . • Maintain a current land acquisition and development plan 'a " ., ,� t r41 • Increase our donor base by 50%in the next two years t 1'c °1 = �,1 1 ;�' • Increase our volunteer base by 25% within the coming year • Increase net profits of the annual Alternative Gift Fair by $10,000 in FY 2002 • Secure a warehouse for tool and building materials.storage El Monte (2504 Burkett Road) BEFORE San Gabriel Valley Habitat for H;umanity... 9 53 t t - - 7 _ tr-, G2 r ,t. ? t..a~^e4t ti f1 ,� 1 -'4.�ty r1 a 3 rtfrr t y., _ t .-.t rr . ..k4 1 I j c`ij .. 1 TTS� * x �u'nt .h {f`r S- uY LL t�l 1 i1',. t t t 1 i. r�+. ;.T L w d�t�'�as.�-`'�k trrP' -� �-. tA, � '1'1:r1 rY' .&�7w•(ry-i ,.y�5�7� �l" /r f 1 r. s f �l' Gai3l,,1 t c;!' jg� �,m,° I. 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C „' ;`L'.Ir" #.s r , t I Sn -r J��yy 5 1 � 1 �,•"+,'>„ae.�tti.v�t� :?t ry,�� 7,, 1.*.':',1-;.1;•!:.:..•�'I tr rf 71 a h L!z,``.1,1 F 1 1 r t', i t..r-y 1 S,�P;Af 6� ,!..,V Y 'A P . .rat' ;rl a;h ...+Y.e �-� . ? 1n1: !:_...h_ ..k..� -^•�•. 1..... !� '4.�� :li w✓d.e:..• t�, •t r.._ M „ d._ a.t, AFTER San Gabriel Valley Habitat for Humanity... , "0 ,k e, f4 ltr3.3 ct 1 vl��`,i,��','}liF �P,, 4 t> .. � 4L}��� =i.S•.�-�}1�y151. ur'i'c rl �Z i F 1 6) ""l. 0� R+i 41 .•.r 1 A. s - --,s ' 1 3t ,t01tt,y3'.t r,4-,4"-.',,,.... �- �.�y,j 11} . - d + 4^ S J} TTT t} r 3 ,1.x �t r �Pfi 1 r' / tE]y '*2 1 14 1 ¢ t t 10 tT}�'Y t ;11F-.Ty.,t _'fig i,�iy` t, :i j td „`Y,1,„-..-4!,,,„..;-,-''1 - 1x .- -r e. 5 t j 0,:?1,,,,i,. et It 11k`� .41 1 3c S t ' , --7:... , ..:'.r,t`,,_ld'∎.�itiil ...,Si. .... ,,:ai=r 4..,,, "-A,` 4.,,, r•. , . . t • 4 • A CALL FOt L.EADEHIP...A CALL FOR ACS.viN , San Gabriel Valley Habitat for Humanity invites you to make a commitment—to improve the quality of life for hard-working, low-income families in our community. We ask you to help us make a difference in the San Gabriel Valley by coming together with people from all faiths, all political parties and walks of life. Our vision of hope is that through parterships of individuals,businesses, churches, foundations and civic groups, we can strengthen the very fabric of our local society. The impact of making affordable housing a matter of((con- science and action will stabilize and improve neighborhoods. Tax bases increase,people take pride in their com- munities and property values rise. Habitat calls for extraordinary commitment from the San Garbriel Valley community. With this commitment, however, all involved can advance the goal of affordable housing in the Los Angeles County area. San Gabriel Valley Habitat for Humanity calls for: • Leadership in inviting/calling others to participate. "Now, I have something I can • Leadership in providing funding from individuals, businesses and be proud of, for my children corporations, churches, foundations and civic groups. to be proud of and strive to do better in life. I want my • Leadership in identifying available, affordable land. children to have a place to • . • Leadership in encouraging participation at the advisory level. live in and love in. This is home." • Leadership in working with community governments to provide —Jean Tejada affordable housing programs. New Homeowner • Leadership in encouraging meaningful, faith-based volunteer participation. The next decision you make could be one that will positively transform neighborhoods and families throughout the area.You can make a difference. Please join us in hope and our practical effective labor of love. riiroft 'Sob) I $ .FOR • San Gabriel Valley Habitat for Humanity 789 North Altadena Drive • Pasadena, California 91107 Phone: (626)398-9371 Fax: (626)398-1961 www.sgvhabitat.org sgvhfh @jps.net 'K E Y S E R M A R S T O I` , S S O C I A T E S I N C . • ADt?SORS IN: REAL ESTATE • 500 SOUTH GRAND AVENUE, SUITE 1480 REDEVELOPMENT LOS ANGELES,CALIFORNIA 90071 R I `�Ei, {V yw AFFORDABLE HOUSING PHONE: 213/622-8095 +•,1 I�"� ECONOMIC DEVELOPMENT pp 4((��Qe FISCAL IIIMPACT Fax:213/622.5204 ...� A,11, N� • INFRAS?RUCTURE FINANCE CC """!!! fffffff[G1�G7 i1 V AL UA ION AND LITIO ION SUPPORT • Los Angeles • Calvin E.Hollis,II MEMORANDUM . Kathleen H.Head James A.Rabe • Paul C.!Anderson Gregory D.Soo-Hoo To: Peter Kinnahan, Economic Development Administrator San Diego City of Arcadia Gerald Trimble Robert J.Wetmore Paul C. Marra From: Kathleen Head _ SAN FRANCISCO A.Jerry Keyser Date: November 30 2000 • Timothy)C.Kelly � Kate Earle Funk i Denise E.Conley Debbie M.Kern Subject: Habitat For Humanity As a follow-up to our recent meeting, the following memorandum summarizes the Keyser Marston Associates, Inc. (KMA) experience with projects developed by Habitat for Humanity (HFH) in several Southern California communities. This summary is intended to assist the , Arcadia Redevelopment Agency (Agency) in determining whether it would be advantageous to undertake a HFH project as a means of providing affordable housing units within the community. _ • BACKGROUND.STATEMENT HFH is an ecumenical Christian organization that provides housing for working.poor familiesi. Specifically,,the HFH mission is to sell basic homes at an affordable price to very-low income families. This is accomplished in the following manner: • 1. HFH attracts volunteer workers and donated building materials to assist.in building the -homes. 2. HFH requires the home buyers to assist in building other families' homes. This labor is treated as the home buyer's sweat equity. 3.. HFH solicits municipal assistance, typically in the form of donated land and public fees • costs. . 4. HFH provides interest free mortgages to the home buyers to minimize the housing related costs that must be incurred by the participants. • • e 0011072;ARC.KHH:gbd 10201.001/001 • ATTACHMENT 2 • To: Peter Kinr ln, City of Arcadia November 30, 2000 Subject: Habitat For Humanity Pal e 2 • It has been our experience that approximately 50% of the costs associated with a HFH pr jest are typically funded with volunteer labor and materials. HFH projects are also typically assisted with donated land and fee waivers from municipalities; however, their charter precludes theft-from accepting any building cost assistance from the public sector. Any • construction costs that are not funded from donations/volunteers must be paid for from HF resources. . • The issues that are typically considered by redevelopment agencies that are undertaking HFH projects are: 1. Project design and amenities; • • 2. Assistance costs; 3. Affordability; 4. Family selection; and, 5. Development timing. The following sections of this memorandum describe the issues that must be resolved wh-n projects are undertaken with HFH. These sections also identify the major opportunities an• constraints associated with HFH projects. ISSUES . Project Design and Amenities • HFH has an explicit mission to provide simple basic housing to their program participants. By definition, this means that HFH homes are designed tb meet the minimum building code standards imposed by municipalities. For example, when HFH first entered the California market, they were extremely reluctant to provide garages with the homes. It has also been our experience that it is very difficult to convince HFH to provide more than one bathroom in a home, even when the homes include four- or mare bedrooms. HFH'has been developing homes in California for nearly 10-years now. During that perio , they have become significantly more accommodating in meeting the requirements impose by jurisdictions that are providing them with financial assistance. •However, given that HFH wishes to minimize their out-of-pocket costs, and that they are precluded from accepting p blic funding for building costs, it is often a struggle to meet the design and amenities objectives held by redevelopment agencies. In practice, it is typically necessary for HFH to attract benefactor(s) to provide the extraordinary building and/or landscaping required to allow the project-to complement the existing uses in the neighborhood. 0011072;ARC.KHH:gbd • 10201.001/001 • ' • . To: - Peter Kinn i, City of Arcadia November 30,2000 Subject: Habitat For Humanity Page 3 . Assistance Costs • HFH projects are unique in the marketplace for the following reasons: 1. They derive a significant:portion of their costs from donations/volunteers; 2. They self-finance their home sales with interest free loans; and, 3. They artificially set the sales prices for the homes to reflect the price that can both be afforded by the target home buyers and that allows them to recoup the out-of-pocket costs HFH contributed to the project. The unusual characteristics embodied by HFH projects make it impossible to evaluate the warranted redevelopment agency assistance using traditional financial analysis techniques. Rather, it is necessary for the redevelopment agency to identify the amount of assistance that they are willing to provide, and then HFH will structure the home sales price and home buyer financing terms to reflect the characteristics associated with the specific project being evaluated. It is important to recognize that there is no chance for HFH to achieve a windfall profit on a project, because in each case, the home sale price is set equal to the effective costs. As the costs decrease,,HFH is able to target households at lower and lower income levels. As the costs increase, the target audience moves towards the high end of the very-low income range. Typically, redevelopment agencies donate the development site to HFH in a cleared and devblopable.statef As a general rule, they also pay for the municipally imposed permits and • fees costs. In some instances, the redevelopment agency will also pay for the infrastructure and off-site improvements necessitated by the development. In areas with high land costs this assistance package can easily total over$100,000 per unit. However, it should be noted that this cost is significantly lower than the cost associated with providing home ownership opportunities to very-low income households on a conventional basis, and roughly equivalent to the cost associated with providing new rental units to very-low income households. Affordability • The HFH mission is to provide housing for working poor families. As a practical matter, that means that the participant families typically qualify as very-low income under the definition imposed by California Redevelopment Law as presented in the California Health and Safety Code (Code). The Code defines very-low income as households that earn less than 50% of the area median income. For Los Angeles County, this standard is currently $26,050 for a family of four. 0011072;ARC.KHH:gbd 10201.001/001 • • To: Peter Kinn n, City of Arcadia) November 30, 2000 Subject: Habitat For Humanity Page 4 • The Code requires housing projects that are assisted with Property Tax Increment Housin Set-Aside funds (Set-Aside) to be provided to the residents at an affordable housing cost. . . Under the Code Section 50052.5 definition, affordable housing cost is calculated based on benchmark standards for each income group and home size. For example, the affordable housing cost per month for a very-low income three-bedroom home is•calculated as follows: - $26,050 (50% of the Median for a four-person household) *30% = $7,815/12 ='$651 It is important to understand that the home buyer's total housing related expenses cannot exceed $651 per month. These expenses include mortgage payments, property taxes', insurance costs, utilities costs and an allowance for ongoing maintenance costs. To determine the maximum home price a very-low income household can pay, it is necessary to first deduct all the non-mortgage related costs. The remaining funds can then be dedicated to debt service on the HFH mortgage: A prototypical example of this concept follows: - Property Taxes2 $230 'Insurance 145 - Utilities - 70 Maintenance 25 Total $470 Funds Available for Mortgage Total Available Funds $651 • (Less) Other Housing Expenses (470) • Funds Available for Mortgage $181 • As can be seen in the table above, under the Code Section 50052.5 requirements, a very-ow income household would be able to allocate $181 per month to the debt service payments on the HFH mortgage for a three-bedroom unit. This equates to a mortgage ranging from $43,440 if the mortgage repayment period is set at 20-years, to $86,880 if the repayment erm is set at 40-years. . • It has been our experience that HFH will set the mortgage repayment period at the term required to both keep the payment at the "affordable housing cost" and to provide HFH wih - the sales revenues that.they have determined are necessary for each specific project. For . • , � 1 Typically the property tax levy is based on the assessor's estimate of the home's fair market value. • ' 2 Based on a $250,000 market value and a 1.1% property tax rate. • 0011072;ARC.KHH:gbd • 10201.001/001 • • • To: Peter Kinn n, City of Arcadia November 30, 2000 Subject: Habitat For Humanity Page 5 • example, if HFH wishes to set the sales price at$75,000, the mortgage repayment term would have to beset at approximately 35-years. It is important to remember that HFH provides home buyers with interest free mortgages, which materially enhances the opportunity for very-low income households to purchase a home. If the mortgage carried a conventional interest rate, and a 35-year amortization period, the maximum affordable price for a very-low income home buyer would be approximately $25,500. When that fact is considered in conjunction with the benefits created by HFH's ability to attract donated materials and labor, it is clear that no traditional developer would be able to undertake such a project without substantially more redevelopment agency assistance than is typically required to implement a HFH project. Family Selection The HFH mission is to assist families; HFH only assists households that have children. E ch HFH chapter has a Family Selection Committee that establishes the evaluation criteria that will be applied to each project. HFH is working with redevelopment agencies throughout Souti ern California, and as a result they are keenly aware that the selection process cannot be based on the prospective participants' religious affiliation. Moreover, in several cases, redevelopment agencies use United States Department of Housing and Urban Development (HUD) HOME program funds to assist the project. In those cases, HFH must adhere to federal "Fair Housing " policies. It has been our experience that redevelopment agencies typically identify their family selection criteria in the affordable housing assistance agreement. This often includes the requirement that the marketing effort be focused in the community, and that HFH give consideration to families that have been displaced by redevelopment activities. However, the use of preferences in the selection process is a hotly debated topic, and thus it is important to obtain legal advice on the type of restrictions that can be imposed on the potential pool of home buyers. Development Timing Each HFH chapter has a paid Director, but in fact, HFH is a volunteer based organization. The vast majority of the development service providers such as architects, attorneys, skilled tradespeople, etc. are volunteers. In addition, HFH is heavily dependent on the use of donated materials. Thus, it cannot be anticipated that HFH projects will be developed on the same type of timeline as is applied to a conventionally constructed project. Rather, HFH typically undertakes projects as the necessary services and materials become available. KMA has assisted redevelopment agencies in evaluating numerous HFH projects, and it has been our experience that the development timeframc varies widely from project to project 0011072;ARC.KHH:gbd • 10201.001/001 . . . .1 • ' To: Peter Kinn n, City of Arcadia November 30, 2000 Subject: Habitat For Humanity ' Fade 6 • This is partially dependent on the capacity of the particular HFH chapter, and partially based on the chapter's success in attracting donations/services. As a result, KMA typically recommends that the redevelopment agency postpone the site's conveyance until HFH can demonstrate that they have accumulated sufficient resources to complete the project in a timely fashion. In this manner, the redevelopment agency is not faced with a partially developed site over a protracted construction period. . . • CONCLUSIONS The HFH mission is solely focused on providing affordable housing to very-low income families. There is clearly no.profit motivation at any level of the organization. Moreover, the national organization has strong financial resources, and they often provide financial assistance to the individual chapters. • If a redevelopment agency wishes to pursue a home ownership program targeted to very-low income households, HFH offers the only model that KMA has seen work successfully. However, it is first important to determine that very-low income home ownership is a prudent objective. In making that decision it must be remembered that very-low income households have very little discretionary income. Thus, the ongoing cost to maintain a home can become. a real burden on the family's economic well-being. It is therefore necessary to balance the . objective to increase home ownership opportunities against the ongoing economic considerations. • • • • • • • • • 0011072;ARC.KHH:gbd 10201.0011001 • •