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HomeMy WebLinkAboutMINUTES - 11042003 - C105 Now 4 ••• Contra I ' " + �� _• Costa A County TO: BOARD OF SUPERVISORS C,105* FROM: Dennis M. Barry, AICP Community Development Director DATE: November 4, 2003 SUBJECT: Bella Monte Apartment Financing, Bay Point SPECIFIC REQUEST(S) OR RECOMMENDATIONS(S) & BACKGROUND AND JUSTIFICATION RECOMMENDATIONS ADOPT Resolution authorizing the issuance of tax-exempt bonds for the construction of the Bella Monte Apartments, Bay Point and actions related thereto. FISCAL IMPACT None. The bonds are entirely secured by a revenue pledge and reserve accounts. The County is compensated for its cost of issuance and annually for monitoring expenses. y CONTINUED ON ATTACHMENT: X YES SIGNATURE: 4C444oeoI ECOMMENDATION OF COUNTY ADMINISTRATOR RECOMM DATION OF OARD COMMITTEE PROVE OTHER SIGNATURE(S): , ACTION OF BO D N APPROVED AS RECOMMENDED,,S� _ VOTE OF SUPERVISORS I HEREBY CERTIFY THAT THIS IS A UNANIMOUS (ABSENT ) TRUE AND CORRECT COPY OF AN AYES: NOES: ACTION TAKEN AND ENTERED ON THE ABSENT: ABSTAIN: MINUTES OF THE BOARD OF SUPERVISORS ON THE DATE SHOWN. Contact: Jim Kennedy 3-1255 orig: Community Development cc: County Administrator ATTESTED C ✓ County Counsel JOHN SWEItTEN, CLERK OF THE BOARD OF SUPERVISORS Redevelopment Agency AND THE COUNTY ADMINISTRATOR via: Community Development * Resources for Community Development BDEPUTY * Jones Hall \\fs-cd\users$\lnoble\Personal\Board Orders and Greenies\BOARD.bellamonte.11.03.doc BACKGROUND/REASONS FOR RECOMMENDATIONS On September 24, 2002 the Board of Supervisors approved an Inducement Resolution conditionally stating its intent to issue multi-family mortgage revenue bonds for the construction of the Bella Monte Apartments, Bay Point. Since that time the County has received the necessary authority from the California Debt Limit Allocation Committee to issue private activity bonds for the project. The property is to be owned by Bella Monte Apartments, L.P.,a California limited partnership. The Bella Monte Apartments are a 51-unit project located at 2950 Willow Pass.Road, Bay Point. The project is a new construction affordable housing project with a plan of finance as set forth below: Construction Period Finan Tax Exempt Bond Loan $ 9,687,000 County Redevelopment Funds $ 2,8239111 County CDBG/HOME Loan $ 11378,000 County HOPWA Loan $ 370,000 Federal Home Loan Bank $ 2291500- Developer Equity& Deferred Developer Fees $ 12537,1308 $16,039,269 Permanent Finan Tax Exempt Bond Loan $ 293269100 County Redevelopment Funds $ 298239111 County CDBG/HOME Loan $ 11378j000 County HOPWA Loan $ 370,000 Federal Home Loan Bank $ 229,500 State Multifamily Housing Program $ 3,101,692 Deferred Developer Fee $ 585,000 Tax Credit Equity Investor $ 522252866 $16,039,269 The proposed financing is consistent with County/Redevelopment Agency's policies to increase the supply of affordable housing. The resolution before you provides the necessary authority to sell such bonds. The bond sale resolution authorizes a number of actions, a summary of which is provided as Attachment A. The following is additional background on the project and the financing. The Bond Regulatory Agreement as well as Regulatory Agreements for the other financing sources will result in the following distribution of affordable units for fifty-five years: Target Group No of Units Extremely Low Income 5 @ 30% AMI Very Low Income 14 @ 40% AMI Very Low Income 5 @ 50%AMI Low Income 27 @ 60% AMI The proposed financing and the credentials of Bella Monte Apartments, L.P., a California limited partnership have been thoroughly evaluated by staff. Resources for Community Development (RCD) is the non-profit developer of the project. With the County and/or its Redevelopment Agency RCD has completed Elaine Null Court, Bay Point; Aspen Court, Pacheco; Pinecrest Apartments, Antioch; Camera Circle, Concord; and Alvarado Court, Pinole. The bonds to be issued will finance the development of the Bella Monte Apartments. The bonds will be secured by a pledge of rents and reserve accounts. The bonds will be sold on a private placement basis. The bonds will be unrated. The proposed issuance of unrated bonds complies with the County's adopted polices for the issuance such bonds, including independent financial review of the real estate,large denomination bonds only,sophisticated investor requirements,and continuing investor requirements. The bonds are to be issued in two series totaling $9,687,000. No pledge of County revenues is involved in securing the bonds. \\fs-cd\users$\lnoble\Personal\Board Orders and Greenies\BOARD-bellamonte.11.03.doc ATTACHMENT A The Bond Sale Resolution authorizes a number of actions, a summary of which follows: 1 Authorizes the issuance of revenue bonds in an amount n of to exceed $9,687,000; 2. Approves the form of Master Pledge and Assignment between the County, and U.S. Bank National Association as Agent and Pledge Holder; 3. Approves the form of Master Agency between the County, and U.S. Bank National Association; 4. Approves form of Regulatory Agreements between the County, Bella Monte Apartments, L.P. and the Borrower; 5. Designates Jones Hall,A Professional Law Corporation, as Bond Counsel; 6. Authorizes the Chair, Vice-Chair, County Administrator, Director of Community Development, Deputy Director-Redevelopment to execute documents and to take such other actions necessary to complete the sale of bonds, and actions related thereto. \\fs-cd\users$\lnoble\Personal\Board Orders and Greenies\BOARD.bellamonte.11.03.doc RESOLUTION NO. 2003/682 A RESOLUTION OF THE BOARD OF SUPERVISORS OF THE COUNTY OF CONTRA COSTA AUTHORIZING THE ISSUANCE OF COUNTY OF CONTRA COSTA MULTIFAMILY HOUSING REVENUE BONDS (BAY POINT/BELLA MONTE APARTMENTS) 2003 SERIES D-1 AND 2003 SERIES D-2, APPROVING AND AUTHORIZING THE EXECUTION AND DELIVERY OF RELATED DOCUMENTS, AND APPROVING OTHER RELATED ACTIONS IN CONNECTION THEREWITH WHEREAS, the County of Contra Costa (the "County") is authorized pursuant to Chapter 7 of Part 5 of Division 31 of the Health and Safety Code of the State of California (the "Act") to issue revenue bands to provide funds to finance multifamily rental housing facilities; and WHEREAS, Bella Monte Apartments, L.P., a California limited partnership (the "Borrower") has requested that the County issue and sell tax exempt revenue bonds to assist in the financing of the acquisition, construction and equipping of a 52-unit rental housing facility located in the unincorporated area of the County to be known as Bay Point/Bella Monte Apartments (the "Project"); and WHEREAS, the County now desires to issue two series of bonds (the "Bonds"), to provide financing for the Project; and WHEREAS, the Deputy Director-Redevelopment of the Community Development Department of the County (the "Deputy Director-Redevelopment") has held a public hearing on the proposed issuance of the Bonds, as required under the provisions of the Internal Revenue Code applicable to tax-exempt bonds, following published notice of such hearing; and WHEREAS, there have been prepared various documents with respect to the issuance of the Bonds, copies of which are on file with the Deputy Director-Redevelopment, and this Board of Supervisors now desires to approve the issuance of the Bonds and the execution and delivery of such documents by the County; and WHEREAS, all conditions, things and acts required to exist, to have happened and to have been performed precedent to and in connection with the issuance of the Bonds as contemplated by this Resolution and the documents referred to herein exist, have happened and have been performed in due time, form and manner as required by the laws of the State of California, including the Act; NOW, THEREFORE, BE IT RESOLVED by the Board of Supervisors of the County of Contra Costa, as follows: 1. The County hereby finds and declares that the above recitals are true and correct. 2. Pursuant to the Act and the Pledge and Assignment (hereinafter defined), two series of revenue bonds of the County designated as "County of Contra Costa Multifamily Housing Revenue Bonds (Bay Point/Bella Monte Apartments) 2003 Series D-1" and as "County of Contra Costa Multifamily Housing Revenue Bonds (Bay Point/Bella Monte Apartments) 2003 \\fs-cd\users$Unoble\Personal\Documents\bellamonte.resolutlon.doc Series D-2" in a collective total aggregate principal amount of not to exceed $9,687,000 (collectively, the " Bonds") are hereby authorized to be issued. The Bonds shall be executed by the manual or facsimile signature of the Chair of the Board of Supervisors (the "Chair"), the Director of the Community Development Department (the "Director") or the Deputy Director- Redevelopment and attested by the manual or facsimile signature of the County Administrator and Clerk of the Board of Supervisors (the "County Administrator), in the form set forth in and otherwise in accordance with the Pledge and Assignment. 3. The Master Pledge and Assignment relating to the Bonds (the "Pledge and Assignment") by and among the County, U.S. Bank National Association, as agent, and U.S. Bank National Association, as holder, in the form on file with the Deputy Director- Redevelopment, is hereby approved. Any one of the Chair, the Director and the Deputy Director-Redevelopment (collectively, the "Designated Officers") is hereby authorized and directed, for and in the name and on behalf of the County, to execute and deliver the Pledge and Assignment, and the County Administrator is hereby authorized and directed, for and in the name and on behalf of the County, to attest the Pledge and Assignment in said form, together with such additions thereto or changes therein as are recommended or approved by the Designated Officer executing the Pledge and Assignment upon consultation with the Deputy Director-Redevelopment and Bond Counsel to the County (including such additions or changes as are necessary or advisable, provided that no additions or changes shall authorize a total aggregate principal amount of Bonds in excess of the amount set forth in Section 2 above), the approval of such additions or changes to be conclusively evidenced by the execution and delivery of the Pledge and Assignment by the County. The date, maturity dates (which shall in no event be later than December 1, 2038), interest rate modes, privileges, manner of execution, place of payment, terms of redemption and other terms of the Bonds shall be as provided in the Pledge and Assignment as finally executed. 4. The Master Agency Agreement relating to the Bonds (the "Agency Agreement") between the County and U.S. Bank National Association, as agent, in the form on file with the Deputy Director-Redevelopment, is hereby approved. Any one of the Designated Officers is hereby authorized and directed to execute and deliver the Agency Agreement in said form, together with such additions thereto or changes therein as are recommended or approved by the Designated Officer executing the Agency Agreement upon consultation with the Deputy Director-Redevelopment and Bond Counsel to the County (including such additions or changes as are necessary or advisable), the approval of such changes to be conclusively evidenced by the execution and delivery of the Agency Agreement by the County. 5. The Regulatory Agreement and Declaration of Restrictive Covenants relating to the Bonds, between the County and the Borrower (the "Regulatory Agreement") in the form on file with the Deputy Director-Redevelopment, is hereby approved. Any one of the Designated Officers is hereby authorized and directed, for and in the name and on behalf of the County, to execute and deliver the Regulatory Agreement in said form, together with such additions thereto or changes therein as are recommended or approved by the Designated Officer executing the Agreements upon consultation with the Deputy Director-Redevelopment and Bond Counsel to the County (including such additions or changes as are necessary or advisable), the approval of such additions or changes to be conclusively evidenced by the execution and delivery of the Regulatory Agreement by the County. 6. The Bonds, when executed, shall be delivered to U.S. Bank National Association, as the initial holder thereof, upon the funding of the Loan (as defined in the Pledge and Assignment)with the purchase price for the Bonds. 2 1 7. The law firm of Jones Hall, A Professional Law Corporation, is hereby designated as Bond Counsel to the County for the Bonds. The fees and expenses of such firm for matters related to the Bonds shall be payable solely from the proceeds of the Bonds or contributions by the Borrower. 8. All actions heretofore taken by the officers and agents of the County with respect to the sale and issuance of the Bonds are hereby approved, confirmed and ratified, and the proper officers of the County, including the Designated officers, are hereby authorized and directed, for and in the name and on behalf of the County, to do any and all things and take any and all actions and execute any and all certificates, agreements and other documents, which they, or any of them, may deem necessary or advisable in order to consummate the lawful issuance and delivery of the Bonds in accordance with this Resolution, including but not limited to any other certificates, agreements and other documents described in the Fledge and Assignment, the Agency Agreement, the Regulatory Agreement, and the other documents herein approved. 9. This Resolution shall take effect immediately upon its adoption. PASSED AND ADOPTED this 4th day of November, 2003, by the following vote: AYES: SUPERVISORS GIOIA, UILKEMA, GREENBERG, GLOVER and DESAULNIER NOES: NONE ABSTAINING: NONE ABSENT: NONE Awl, Chair ATTEST: Nov 4. 2003 John Sweeten County Administrator and Clerk Of the Board of Supervisors By. Deputy Clerk 1 3 TO: Board of Supervisors 8. --FROM: Dennis M. Barry, AICP •: Contra Community Development Director Costa mss DATE: November 4, 2003 r�--v unt • SUBJECT: Changes in the Employee Car and Vanpool Pro ram SPECIFIC REQUEST(S) OR RECOMMENDATION(S) & BACKGROUND AND JUSTIFICATION RECOMMENDATIONS APPROVE the transition of the County operated Employee Car and Vanpool Program to a p g program operated and maintained directly by program participants by January 1, 2004 FISCAL IMPACT None to the General Fund. The proposed subsidy would use funds already dedicated to the existing program. BACKGROUND/REASONS FOR RECOMMENDATIONS h The Board of Supervisors first authorized the use of County vehicles for Employee commute pools in 1986. This program was expanded in 1993, with the award of grant funds from the Contra Costa Transportation Authority and in 1998 another grant was awarded from the Bay Area Air Quality Management District for the acquisition of commuter vans. The program has . . . p g gradually expanded to its current size and in recent years additional vans have been acquired through funds awarded to the program from the Board. There are currently 75 employees participating with one-way trips ranging from 20 miles to 65 miles per day. The cost to the employee is calculated on the one-way miles travels by the vans and the number of participants. Vehicle replacement costs were not included in the initial cost allocation methodology for the program. The rates have been adjusted in recent years as the cost of operating the program increased. In the future, the vehicles in the program will need to be replaced as they reach the end of their serviceable life. This will impact the rate structure, as new depreciation costs will cause the rates to increase. Based on the current costs of the program, high maintenance costs of an aging fleet of vehicles, and vehicle depreciation fees the program will need to increase the current rates for the program by an estimated 50%. CONTINUED ON ATTACHMENT: X YES SIGNATURE RECOMMENDATION OF COUNTY ADMINISTRATOR - RECOMMENDATION OF BOARD COMMITTEE - APPROVE OTHER SIGNATURE (S): ACTION OF BOARD ON November 4, 2003 APPROVED AS RECOMMENDED X OTHER VOTE OF SUPERVISORS I HEREBY CERTIFY THAT THIS IS A TRUE x UNANIMOUS (ABSENT None ) AND CORRECT COPY OF AN ACTION TAKEN AYES: NOES: AND ENTERED ON THE MINUTES OF THE ABSENT: ABSTAIN: BOARD OF SUPERVISORS U ERVISORS ON THE DATE Contact: Hillary Heard (925/335-1278) SHOWN. cc: Community Development Department ATTESTED Novenber 4, 2003 General Services, Frank Morgan JOHN SWEETEN, CLERK OF County Administrator, Lara Delaney THE BOARD OF SUPERVISORS Program Participants AND COUNTY ADMINISTRATOR 344 , DEPUTY GATransportation\Hillary\Board Orders and Green ies\Vanpool—Boa rd-Ord er.doc Changes in the Employee Car&Vanpool Program November 4, 2003 Page 2 BACKGROUND/REASONS FOR RECOMMENDATIONS (Continued) This program also is becoming more difficult to meet the needs of employees working throughout the County. Staff at General Services Fleet Management Division is relied upon to monitor the maintenance needs of the vehicles in the program and assist when emergency repairs are required, often after hours. Insurance and administrative costs, which must be passed on to the participants, have also been difficult to assess. Staff researched other vanpool programs for County employees and believe Contra Costa is one of the only employers which still owns, maintains, and runs a vanpool program for it's employees. Other organizations that offer this type of program to its employees do so by referring employees to vanpool or ridesharing services.The County Employee Car and Vanpool Program is not cost effective when compared to other vanpool options that are available to employees and can draw from a larger pool of riders and which can provide more services to a greater number of employees countywide. Vanpool Transition Plan Staff is proposing that the current program be phased out by January 1, 2004. In the interim we will work with a private vendor, Enterprise Rideshare to arrange meetings for existing program participants or interested employees where they can receive information on forming a vanpool and talk with a representative that can lease and provide insurance, maintenance and emergency break down assistance as part of the vanpool lease. There are commute alternative organizations in Contra Costa County that provide some cash incentives for vanpool drivers and users. Under this plan, the employees interested in forming vanpool groups can also access "Rides for Bay Area Commuters"to assist in the formation of vanpools by using their extensive database to match the location and working schedules of individuals also interested in forming vanpools or simply carpooling. In private vanpools, the passengers are not limited to only employees of the County. Staff will work with the vendor to distribute information regarding this program to make other employees aware of the vanpool option. Vanpool Subsidy Staff also proposes that the vehicles currently utilized in the County's vanpool program be sold and any proceeds be utilized to establish a monetary subsidy to encourage employees to consider car or vanpooling as a commute alternative to driving alone. Staff estimates that approximately$90,000 might be available to initiate this subsidy fund; staff has consulted with staff from the County Administrator's Office and they have agreed that this would be an effective use of these monies provided the Board concurs. The subsidy would be awarded to individual County employees who meet the following criteria: ■ Employees must be benefits eligible ■ Commute to work in a qualified Enterprise Rideshare car or vanpool ■ Employees must agree to commute to work by carpooling orvanpooling at least 80%of their scheduled work days The subsidy would be based on 25% of the lease cost of the car or vanpool, with the monetary amount not to exceed $75 per month (see Exhibit E, County Subsidy and F, County Subsidy Cost Comparison). The funds would be given to the employee in the form of a Voucher purchased from Enterprise Rideshare. It is anticipated that once the funds from the sale of vehicles is exhausted, the employee subsidy would end. Comparison of Costs The following is a comparison summary of the costs associated with operating a 15-passenger van commuting a daily distance of 50 miles. The program costs are based on "Current" rates (see Exhibit A, Current Rates), an estimate of what the cost would be with the rate increase (see Exhibit B, Revised Rates)and the proposed costs by Rideshare vendor rates vendors(see Exhibit C). "Rideshare" costs are based on information presented from Enterprise Rideshare. The following assumptions have been made for the purpose of this comparison: employees are in a month to month agreement(as they currently are with the County),there are 11 passengers in the vanpool; fuel is estimated between $2.00 and $2.50 per gallon and the van travels an average of 1,050 miles per month. Attachment C provides a graphic comparison of the County rate increase compared with Enterprise Rideshare rates. Enterprise calculates their rates based