Council Amends Housing Department Budget to Fund Loan Agreement as Part of Monday’s Consent Calendar

The City Council as part of Monday’s consent calendar voted to amend the housing department’s fiscal year 2024 Operating Budget by appropriating $1,997,000 from the Home Investment Partnership (HOME) Fund for the award of a proposed Affordable Housing Loan Agreement.

A consent calendar is a tool used by government bodies to streamline meeting procedures by grouping routine, non-controversial items into a single agenda item that can be approved in one vote. Items on the consent calendar are generally non-controversial and do not require much, if any, discussion.

The funds will be used for an agreement with Home Ownership for Personal Empowerment, Inc. (HOPE) in connection with the proposed HOPE Project.

Two of HOPE’s multifamily projects are located in Pasadena: 

• 940 N. Summit Ave.: three (3) units, built in 1963, acquired by HOPE in 2020.
• 760 Worcester St.: six units, built in 1962, acquired by HOPE in 2020.

The proposed project entails the renovation and financial restructuring of these two properties with City funding assistance totaling $1,997,000 so that HOPE may provide financially sustainable, affordable housing to address an unmet need for this population into the future. 

The two apartment properties were built over 60 years ago and substantial capital improvements are required to extend the buildings’ duration of usefulness. 

Proposed renovations for each property include a variety of exterior and capital improvements including a new roof, plumbing, and replacing stair rails and windows. Green initiatives include more efficient HVAC systems, solar panels, and low-water landscaping. Proposed interior upgrades include kitchen and bathroom remodeling, new appliances, new flooring, and interior painting. 

Furthermore, the scope of work includes accessibility modifications to create additional accessible units. The Project will also include broadband installation. 

HOPE is a nonprofit housing sponsor formed in 1994 to provide affordable housing and services for persons with intellectual and/or developmental disabilities. Among the projects owned and operated by HOPE in Los Angeles County are 21 single-family and multifamily independent-living housing projects totaling 48 units. A number of these projects are subsidized by sponsoring cities with nearly $13 million in HOME and HOME/CHOO funds. HOPE partners with the Frank D. Lanterman Regional Center and other agencies to provide assistance for their clients. 

The total Project budget is $2,017,000, consisting of $1,997,000 in City funds and $20,000 in HOPE owner equity. The City funding would be in the form of a loan, drawn from the City’s allocation of federal Home Investment Partnership program funds and HOME-Community Housing Development Organization (CHOO) funds. HOPE has been determined by staff to qualify as a CHOO that is eligible to receive HOME-CHOO funds. On June 5, 2023, the City Council approved a Substantial Amendment to the 2022-2023 Annual Plan which allocated $1,997,000 in HOME funds for the HOPE Project. 

Here are the other items on Monday’s consent calendar. 

•  Authorization for the City Manager to enter into a purchase order contract with Braun Northwest Inc. for the purchase of a 2024 North Star 171-1 Ambulance in an amount not to exceed $340,252. The PFD currently operates twelve (12) rescue ambulances (RAs), six (6) of which are front-line RAs and six (6) are in reserve status. RA Unit #0961 is a 2013 GMC G4500 Braun with a mileage of 110,735, and is currently located at Fire Station 37. The unit has exceeded its useful life and has been deemed eligible for replacement. The vehicle replacing this unit is a 2024 North Star 171-1 Ambulance. Replacing vehicles that have exceeded their useful lives eliminates the need for costly repairs due to age and wear

• A $130,085 contract extension agreement with TRC Engineering Services, LLC for one year for a total contract period of January 1, 2020, through June 30, for consultant services to conduct inspections of the Pasadena Transit and Pasadena Dial-A-Ride fleet. Inspections will be placed on hold during the pandemic. The City’s fleet is comprised of 44 transit vehicles, 29 fixed route vehicles and 15 demand-response vehicles. 

• Authorization to enter into a contract with Diversified Utility Services Inc. for El Mirador infrastructure improvement project for the Water and Power Department.  PWP provides electricity to more than 65,000 customers. The Transmission and Distribution (“T&D”) System is highly complex and comprised of thousands of components functioning together. The operation of the current distribution system presents a risk of wildfire ignition requiring the utility to address these risks through a myriad of system improvements. · Staff is planning to upgrade the power distribution system to proactively address replacement of aging infrastructure, to increase resiliency of the overhead system to mitigate fire ignition risk with upgraded poles and installation of covered insulated conductors. The project will facilitate the installation of future fiber optic communication lines to the El Mirador radio tower for use by multiple City departments. This project which is included in the Fiscal Year 2024 adopted Capital Improvement Program budget will also solve power quality issues, such as voltage drop during summer months, and add electrical capacity to the upgraded circuits for future load growth. This project requires replacement of 33 power poles and replacement/upgrade of 15 transformers that are nearing end of life, and 21,000 feet of conductor upgrades. The project is located within the west area of Pasadena near the City border. PWP will provide the materials for this project. 

•  Acceptance of bids submitted by PAR Western Line Contractors and Diversified Utility Services for the Overhead Distribution Infrastructure Improvement Projects for the Water and Power Department and authorize the City Manager to enter into a $2.4 million contract with PAR for an amount not-to-exceed $2,445,895 and three year $216,716 contract with Diversified. Staff plans to upgrade the power distribution system from 4KV to 17KV along sections of three existing circuits which are F9, F11, and S3 (Temple Alley). These projects which are included in the Fiscal Year 2024 adopted Capital Improvement Program budget will solve power quality issues, such as voltage drop during summer months, and add electrical capacity to the upgraded circuits for future load growth. These projects are also required to facilitate upcoming substation projects. The F9 project requires replacement of 90 power poles and the replacement/upgrade of 40 transformers that are nearing end of life. and 42,000 feet of conductor upgrades. The F11 project requires the replacement of 52 power poles and replacement/upgrade of 22 transformers that are nearing end of life, and 17,000 feet of conductor upgrades. The F9 and F11 projects are located in the northwest area of Pasadena. The S3 project requires the replacement of 10 power poles and replacement/upgrade of seven transformers that are nearing end of life, and 4,800 feet of conductor upgrades. The S3 project is located within the central area of Pasadena. PWP will provide the materials for this project. 

• Authorization of the City Manager to enter into a $2,868,142, contract with the Axiom Group in response to the project plans and specifications for Complete Streets Project – Avenue 64 from Colorado Boulevard to southern City limits. The City of Pasadena’s Department of Transportation (DOT) has developed a Citywide Complete Streets Program to address traffic-related input from residents through the implementation of traffic calming measures on local streets. The program provides a comprehensive process for managing traffic volume, travel speeds, and traffic noise in the City’s residential neighborhoods. In 2014, DOT identified the Avenue 64 corridor from Colorado Boulevard to the South City limit as an area that would benefit from the Citywide Complete Streets Program. Through the efforts of the San Rafael Area Complete Streets Working Group and with the support of the area’s residents, DOT recommended the installation of a roundabout at the intersection of Avenue 64 at Burleigh Drive, and curb extensions along Ave 64 at the intersections of Cheviotdale Drive and Glenullen Dtive. The proposed measures are expected to improve traffic safety and reduce street crossing distances for pedestrians.  

• Amendments to the Housing Department’s Fiscal Year 2024 Operating Budget by appropriating funds from the lnclusionary Housing Fund’s unappropriated fund balance for the HHP Housing Acquisition Project. Recently, two (2) deed-restricted homeownership units (the “Properties”) have come up for resale: 

• 106 E. Orange Grove Blvd., Unit 102 in the Summit Grove project developed by HHP. This three-bedroom unit is deed-restricted at the moderate income level. Owner Sean Fan, who acquired the unit in 2018, is relocating due to a new job outside of Pasadena. 
• The property at 602 N. Fair Oaks Ave., Unit 120 in the Fair Oaks Court project developed by HHP was removed from the calendar because it is no longer available and the amount was amended. In June 2023, HHP submitted to the City a loan request in the amount of $936,000 to acquire the Properties. Staff have evaluated HHP’s request and in the interest of preserving the affordability of the Properties, it is recommended that the City provide $936,000 in purchase money financing to HHP for the acquisition and resale of the Properties. Under the City’s previous housing acquisition loan agreements with HHP since 2012, HHP has successfully acquired 14 deed-restricted affordable units and resold them to qualified low and moderate income first-time homebuyers. The acquisition financing extended by the City to HHP were fully repaid from the resale transactions. The most recent City loan made to HHP was in January 2022, in the total amount of $450,000 to acquire a unit in the Herkimer Garden development. HHP repaid the City loan in full from the resale transaction, and the property was resold and preserved as an affordable unit in the City’s housing inventory. HHP is an experienced housing organization with a strong track record in developing, marketing and selling affordable ownership housing. Homeownership projects completed by HHP in Pasadena include Haskett Court, Fair Oaks Court, Herkimer Gardens, Summit Grove, and Lincoln Orange Grove. The nonprofit has extensive experience working with income-qualified first-time homebuyers and familiarity with mortgage programs designed for these buyers. HHP maintains an interest list of 9,062 subscribers of which 5,806 have indicated a preference for purchasing a home in Pasadena. 

• Quarterly investment report for the quarter ending June 30.  Government Code Section 53646 (2)(b)(1) states that in the case of a local agency, the Treasurer or Chief Fiscal Officer (CFO) may render a quarterly report to the legislative body of the local agency containing detailed information on: 1) all securities, investments, and moneys of the local agency; 2) a statement of compliance of the portfolio with the statement of investment policy; and 3) a statement of the local agency’s ability to meet its pool’s expenditure requirements for the next six-months. By making these reports optional, this bill does not impose a state-mandated local program, however, encourages local agencies to continue to report. The bill also states that the Treasurer or CFO may report whatever additional information or data may be required by the legislative body of the local agency.

• Amendments to the Waste Management Plan for certain construction and demolition projects. The proposed amendments seek to address the primary findings of the internal audit and staff’s comparative study. Key updates to the C&D program include the following proposed amendments: 
• Exempt residential alteration and remodel projects with permit valuation of $20,000 or less. 
•  Update commercial project thresholds to match State’s requirements. 
• Require permittees to submit a C&D waste management plan for the project and obtain City approval prior to issuance of a permit. 
• Require permittee to submit C&D compliance reports prior to final inspection and/or issuance of occupancy.
•  Streamline the appeal process for permittees. The proposed amendments to the C&D ordinance will allow the City to enhance the program with clearly defined project thresholds and systematic tracking of permit status, ensuring compliance at various trigger points during the construction of a permitted project.