San Francisco Redevelopment Agency


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118-18309-002                                                                                 Agenda Item No. 4 ( e )       

                                                                                                    Meeting of March 17, 2009

                                                                                                                                               

MEMORANDUM

 

TO:                 Agency Commissioners

 

FROM:           Fred Blackwell, Executive Director

 

SUBJECT:    Authorizing a Revolving Share Loan Program for Limited Equity Cooperatives that serves very low- and low-income first-time home buyers and reallocating $500,000 in Citywide Tax Increment Housing Funds for the program; All Redevelopment Project Areas and Citywide Tax Increment Housing Program

 

EXECUTIVE SUMMARY:

There are several limited equity cooperative developments within current and former Redevelopment Project Areas in San Francisco, including Marcus Garvey/Martin Luther King and Northridge. There is a need to assist very low- and low–income first time homebuyers purchase cooperative shares in these developments.  Since these projects contain units supported by Section 8 or other subsidies, the income levels that can be served are lower than typically reached in the Agency’s current ownership programs.  The ongoing carrying costs charged to these owners is affordable, with homebuyer in Section 8 subsidized units spending no more than 30% of income  for carrying costs, regardless of the owner’s income. Cooperative participation also requires the homebuyer to purchase shares in the corporation that owns the property.  Since the target population—very low income households—may lack the sufficient savings for the initial share purchase, the credit worthiness, or the income to support conventional share loans, this proposed new loan program will enable share purchases by those who would otherwise be unable to participate in a limited equity cooperative ownership program.  The funds needed to initiate the program would be reallocated from the Citywide Tax Increment Housing Program.

Staff recommends authorizing a Revolving Share Loan Program for Limited Equity Cooperatives and authorizing funds in an aggregate amount not to exceed $500,000

DISCUSSION:

Background

Cooperative (“co-op”) developments differ from condominium projects in several significant ways.  Perhaps the major distinction is that whereas condominium owners actually own the physical space of the home they purchase, co-op owners own shares in the corporation that controls the entire development, and in exchange, are given occupancy rights for a particular unit.  Unlike a market rate co-op, at which shares can be bought and sold at whatever the market commands, a limited equity cooperative has shares for which the value is regulated by formula.  With recent share purchase requirements at limited equity co-ops in San Francisco averaging around $4,000-$7,000, a limited equity co-op can be one of the most affordable opportunities for a household to enter into the world of ownership.  Co-op purchasers often seek financing to enable the purchase of the co-op shares, just as a condominium or single family home purchaser seeks a purchase money loan to assist in the acquisition of those properties.  Loans made to purchasers of co-op shares are known as “share loans.”

With the presence of several limited equity cooperative developments within current and former Redevelopment Project Areas in San Francisco, including Marcus Garvey/Martin Luther King and Northridge, there is a need to assist very low- and low-income first time homebuyers purchase shares in these developments.  Since these projects contain units supported by HUD project-based Section 8 or other subsidies, the income levels that can be served are lower than typically reached in the Agency’s ownership programs. 

While the ongoing carrying costs charged to these co-op share owners is affordable (no more than 30% of household income for those in Section 8 subsidized units), cooperative participation requires the homebuyer to purchase shares in the corporation that owns the property.  The target population for this program—very low income households—may lack sufficient savings for the initial share buy-in, and/or the credit worthiness or the income to support a conventional share loan. In addition, conventional lenders have historically been hesitant to make co-op share loans and would generally be uninterested in undertaking the small loans for limited equity co-ops in San Francisco.  In most cases, the share loan would be well under $10,000.  Furthermore, closing costs on such conventional loans, even if the banks would issue them, could easily double the total cost of the transaction to the borrower.  For all of these reasons, the proposed new loan program would enable share purchases by those who would otherwise be unable to participate in a cooperative ownership program. 

Staff recommends the creation of a revolving loan fund to assist very low- and low-income households purchase homes available at limited equity cooperative buildings throughout current and former Redevelopment Project Areas in San Francisco.  The Program would be a revolving fund in which all principal repayment and interest would be reinvested and used to support new share purchases and administration of the program.

 

Co-op Share Loan Program

 

  • Proposed Loan Terms:
  • Silent Loan.  No interest or payments would be due until sale, transfer, or certain types of refinancing of the property, or at end of the 45-year term, whichever occurs earlier.
  • Interest to be in the form of shared appreciation, based on the proportion of assistance provided relative to the original purchase price of the co-op shares.  For example, if the loan fund provides 30% of the purchase price of a participant’s co-op shares, the borrower would repay the principal amount plus 30% of any increase in the value of his or her coop shares over time.
  • Maximum loan of 75% of the required share purchase price, up to $7,500 per household.

 

  • Eligible applicants must be first time home buyers, defined as not having owned a principal residence within the three years preceding application.  Applicants must complete a qualifying first time home buyer class prior to participation.

 

 

  • Buyers must contribute a minimum of 25% of the share purchase price in the form of down payment, which would be derived from their own funds and/or permitted match funds.  

 

  • Participants can have no more than $15,000 in liquid assets remaining after share purchase. 

 

 

  • All co-op purchases would be at developments within current, former or future Redevelopment Project Areas in the City and County of San Francisco. 

CALIFORNIA ENVIRONMENTAL QUALITY ACT

 

Agency authorization of a Revolving Share Loan Program for Limited Equity Cooperatives will facilitate the purchase of shares in select limited equity cooperative developments by very-low, low- and moderate-income first-time home buyers, which are fiscal activities that would not have any direct physical effects and are exempt pursuant to CEQA Guidelines Section 15061(b)(3).

 

 

(Originated by David J. Sobel, Senior Development Specialist)

 

 

 

 

Fred Blackwell

Executive Director

 

 

 

 

Attachment:    Attachment A, Revolving Share Loan Program for Limited Equity Cooperatives

 

 

 


 

 

ATTACHMENT A

REVOLVING SHARE LOAN PROGRAM

FOR LIMITED EQUITY COOPERATIVES

 

 

  • PURPOSE OF THIS LOAN PROGRAM

 

  1. The Redevelopment Agency of the City and County of San Francisco (“Agency”) is authorized, pursuant to the California Community Redevelopment Law (Health and Safety Code, Section 33000, et seq.,) and desires to distribute money if needed from its funds for the specific and special purpose of increasing and maintaining the housing stock in the City and County of San Francisco as affordable to very low-, low-, and moderate-income households.

    There are several limited equity cooperative developments within current and former redevelopment project areas in San Francisco, including Marcus Garvey/Martin Luther King and Northridge.  There is a need to assist very low- and low-income first-time home buyers purchase co-op shares in these developments.  Since these projects contain units supported by Section 8 or other subsidies, the income levels that can be served are lower than typically reached in the Agency’s current ownership programs.  The ongoing carrying costs charged to these owners is affordable, with home buyer in Section 8 subsidized units spending no more than 30% of income for carrying costs, regardless of the owner’s income.  Cooperative participation also requires the home buyer to purchase shares in the corporation that owns the property.  Since the target population—very low-income households—may lack the sufficient savings for the initial share purchase, the credit worthiness, or the income to support conventional share loans, this proposed new loan program will enable share purchases by those who would otherwise be unable to participate in a limited equity cooperative ownership program. 

    Staff has recommended the creation of this revolving share loan program for limited equity cooperatives (“Revolving Share Loan Program”) to assist very low- and low-income households purchase homes available at limited equity cooperative buildings throughout former, current and future redevelopment project areas in San Francisco. 

    The funds needed to initiate the program will be reallocated from the Citywide Tax Increment Housing Program.

    LOAN STANDARDS, QUALIFICATIONS AND CRITERIA

 

Section 33763.5 of the California Community Redevelopment Law states:

“All loans made by a redevelopment agency shall be made according to a regulation that contains standards, qualifications, and criteria for the making and approval of loans and that has been adopted by the redevelopment agency at a public meeting.”


 

Pursuant to this statute, the Agency Commission establishes this Revolving Share Loan Program with the following standards, qualifications and criteria:

 

  • Loan Term:  The term of the loan shall be until sale, transfer, certain types of refinancing of the cooperative unit or forty-five (45) years, whichever occurs first.
  • Interest Rate:  Interest to be in the form of shared appreciation, based on the proportion of assistance provided relative to the original purchase price of the co-op shares.  For example, if the loan fund provides 30% of the purchase price of a participant’s co-op shares, the borrower would repay the principal amount plus 30% of any increase in the value of his or her co-op shares over time.
  • Maximum Loan Amount:  The maximum loan amount shall be equal to 75% of the required share purchase price, up to $7,500 per household.
  • Repayment:  No interest or payments would be due until the end of the Loan Term as defined in Section 2.A. above.  At the end of the Loan Term, the borrower shall repay the principal plus the Agency’s share of appreciation to the Agency.
  • Eligible Borrowers:  In order to be eligible to participate in this Revolving Share Loan Program, applicants must be:
  1. a household that is compliant with the eligibility requirements as established by the United States Department of Housing and Urban Development (“HUD”) for the project based Section 8 subsidy program and whose initial household income does not exceed Fifty Percent (50%) of Area Median Income (“AMI”) based on actual household size in accordance with HUD Section 8 rules;
  1.  a first-time home buyer, defined as not having owned a principal residence within the three years preceding his/her application to this program;
  2. have no more than $15,000 in liquid assets remaining after the cooperative share purchase;
  3. have not filed (voluntarily or involuntarily) for bankruptcy, had a foreclosure or granted a deed in lieu of foreclosure within the past seven (7) years of his/her application for this program; and
  4. successfully attended an Agency approved first-time home buyer class prior to participation.
  • Eligible Cooperative Projects:  Loans under this program may only be used to purchase share(s) in cooperatives which are:
  1. limited equity cooperatives;
  2.  have current project based Section 8 contracts with HUD; and
  3. located in former, current or future Agency redevelopment project areas.
  • Borrower Equity:  Eligible borrowers must contribute a minimum of 25% of the cooperative share purchase price in the form of a down payment, which would be derived from their own funds and/or permitted match funds, as determined by the Agency.
  • Fees:  No fees shall be charged by the Agency for participation in this Revolving Share Loan Program.
  • Security for Loans:  Agency loans under this Revolving Share Loan Program shall be secured by a deed of trust against the cooperative share(s) purchased by the eligible borrower.  The Agency’s Deputy Executive Director of Housing may approve subordination of the Agency’s deed of trust, if in his/her discretion it is necessary to allow the borrower to obtain additional financing.
  • Proof of Eligibility:  Applicants will be required to submit to the Agency:  pay stubs for the last three (3) months; three most current asset statements (bank accounts, etc.); and tax returns for the last three (3) years as proof of their income eligibility.  Applicants may also be asked to provide such other documents and information, in such forms as the Agency’s Executive Director finds satisfactory, in order to establish their eligibility for participation in this program.
  • Defaults and Remedies:  Borrowers shall be required to comply with all of the terms and conditions contained in this Revolving Share Loan Program, loan agreement, promissory note, deed of trust and any other documents executed in connection with his/her participation in this Revolving Share Loan Program (collectively the “Agency Documents”).  The Agency shall have the right to exercise any and all remedies available to it under contract, at law or in equity for any material breach of the covenants, conditions or requirements contained in the Agency Documents.
  • CEQA FINDINGS

Agency authorization of this Revolving Share Loan Program for Limited Equity Cooperatives will facilitate the purchase of homes by very low- and low-income first-time home buyers, which are fiscal activities that would not have any direct physical effects and are exempt pursuant to the California Environmental Quality Act (“CEQA”) Guidelines Section 15061(b)(3).

  • FUNDING OF LOAN PROGRAM

In adopting this Revolving Share Loan Program, the Agency Commission authorizes the Executive Director to reallocate $500,000 from the Citywide Tax Increment Housing Program to fund the loans under this program.  Any loans repaid under this program (principal and accrued interest) shall be reinvested and used to support new share purchases and administration of this Revolving Share Loan Program.


 

  • AUTHORITY OF THE EXECUTIVE DIRECTOR TO MAKE LOANS

In adopting this Revolving Share Loan Program, the Agency Commission authorizes the Executive Director or his/her designee to enter into any and all ancillary documents (including but not limited to loans, promissory notes and deeds of trust) and to take any action necessary to make the loans contemplated under this program, up to a total aggregate amount not to exceed $500,000, all consistent with the terms of this Revolving Share Loan Program.

 

[Remainder of Page Intentionally Left Blank]

 

 

 

 

 

 


 

 

RESOLUTION NO.  30-2009

 

 

 

AUTHORIZING A REVOLVING Share Loan Program for Limited Equity Cooperatives that serves very low- and low-income first-time home buyers and REallocatING $500,000 in

CITYWIDE TAX INCREMENT HOUSING fundS for the program;
All Redevelopment Project Areas and Citywide Tax Increment Housing Program

 

 

BASIS FOR RESOLUTION

 

  1. There are several limited equity cooperative developments located in current and former Redevelopment Project Areas in the City and County of San Francisco that serve very low- and low-income households.

 

  1. Purchasing into these cooperatives requires an equity share purchase, in addition to carrying costs.

 

  1.   In addition, the amounts required to purchase into these limited equity cooperatives are generally less than $10,000 and are neither attractive to nor cost effective for conventional lenders to finance.

 

  1. The Redevelopment Agency of the City and County of San Francisco (the “Agency”) desires to establish a Revolving Share Loan Program for Limited Equity Cooperatives (the “Program”) to assist very low- and low-income households who are first-time home buyers with the purchase of shares at limited equity cooperatives with project based Section 8 within former, current and future Redevelopment Project Areas in San Francisco.

 

  1.   Interest due will be in the form of shared appreciation, based on the proportion of assistance provided relative to the original purchase price of the shares.  For example, if the Program fund provides 30% of the purchase price of the shares, the borrower would repay the principal amount plus 30% of any increase in the value of the shares over time.

 

  1. Buyers must contribute a minimum of 25% of the share purchase price in the form of a down payment which would be derived from their own funds and/or permitted match funds.

 

  1. Participants can have no more than $15,000 remaining in liquid assets subsequent to the share purchase.

 

  1.   Participants must complete home buyer counseling prior to application, and must agree to participate in post-purchase counseling.

 

  1. Agency staff recommends that the Agency reserve the use of $500,000 from the Citywide Tax Increment Housing Program to establish this new fund.

 

  1. would not have any direct physical effects and are exempt pursuant to the California Environmental Quality Act Guidelines Section 15061(b)(3).



RESOLUTION

 

ACCORDINGLY, IT IS RESOLVED by the Redevelopment Agency of the City and County of San Francisco that:

 

  1. Share Loan Program for Limited Equity Cooperatives is hereby adopted and approved in the form attached hereto as Attachment A;

 

  1. Revolving Share Loan Program; and

 

  1. Revolving Share Loan Program without the need for further action by the Agency Commission; to enter into any and all ancillary documents and to take any action necessary in connection with making loans contemplated under this Revolving Share Loan Program, up to a total aggregate amount not to exceed $500,000.

 

 

APPROVED AS TO FORM:

 

 

 

_________________________

James B. Morales

Agency General Counsel

 

108-033.09-002                                                                                            Agenda Item No. 4 ( f )

                                                                                                                Meeting of March 17, 2009

 

MEMORANDUM

 

TO:                 Agency Commissioners

 

FROM:           Fred Blackwell, Executive Director

 

SUBJECT:    Authorizing a Second Amendment to the Amended and Restated Letter Agreement with the Mayor's Office of Community Investment (“MOCI”) to include Young Community Developers, a community-based organization offering employment development services, and to increase the compensation by an amount not to exceed $164,151, for a total aggregate amount not to exceed $1,131,668 for the administration of contracts with five community-based organizations to provide business assistance and employment development services from January 1, 2009 to June 30, 2009; All Redevelopment Project Areas

 

 

EXECUTIVE SUMMARY

 

On December 16, 2008, the Agency entered into a six-month letter agreement with the Mayor’s Office of Community Investment (“MOCI”), to continue to provide business assistance and employment development services for all redevelopment project areas.  The current letter agreement runs from January 1, 2009 to June 30, 2009, and includes a budget in an amount not to exceed $967,517 to provide business assistance and employment development services through four community-based organizations (“CBOs”).  These CBOs are: (1) the South of Market Foundation, doing business as Urban Solutions; (2) Asian Neighborhood Design; (3) Renaissance Entrepreneurship Center; and (4) Mission Hiring Hall, Incorporated (“Mission Hiring Hall”). 

 

Young Community Developers (“YCD”) was not included in the current letter agreement due to ongoing negotiations between Agency staff, representatives from the Office of Economic and Workforce Development and MOCI concerning YCD’s programming and the organization’s ability to meet compliance standards. Agency staff indicated their intention to bring the YCD contract forward to the Commission as a separate item at a later date to ensure ongoing workforce development services offered by YCD in several of the Agency’s Project Areas. 

 

Since that time, YCD has engaged in an ongoing dialogue aimed at not only improving their overall compliance with the Agency’s contractual obligations, but also the overall improvement of their employment development program.  Furthermore, YCD has an improved compliance record and continues to support the Agency’s implementation of its Construction Workforce Program. Therefore, Agency staff seeks to enter into a Second Amendment to the Amended and Restated Letter Agreement (the “Agreement”) with MOCI to include employment development services offered by YCD.

 


 

Agency Commissioners                                                                                            108-033.09-002

Page 2                                                                                                    Meeting of March 17, 2009

 

 

Staff recommends authorizing a Second Amendment to the Agency’s existing Letter Agreement with MOCI to include Young Community Developers as a community-based organization offering employment development services.

 

 

DISCUSSION

 

To further the Agency’s economic development efforts in various redevelopment project areas, the Agency entered into an Amended and Restated Letter Agreement with the Mayor’s Office of Community Investment (“MOCI”) for business assistance and employment development on July 1, 2008 to contract with five, community-based organizations to provide business assistance and employment development services for all redevelopment project areas until December 31, 2008.  The Agency entered into this six-month contract to assess economic development efforts and discuss ways to improve the delivery and performance of these business and employment development programs.  Agency staff and MOCI staff agreed that these discussions were necessary with the various community groups to ensure a program-delivery system that functions more effectively and efficiently within the respective community. 

 

After several discussions and a reallocation of workforce services, on December 16, 2008 the Agency entered into another six-month letter agreement with MOCI, to continue to provide these services for all redevelopment project areas.  YCD was not included in this agreement due to discussions between Agency staff, representatives from the Office of Economic and Workforce Development and MOCI concerning YCD’s programming and the organization’s ability to meet compliance standards. Agency staff indicated their intention to bring the YCD contract forward to the Commission at a later date to ensure ongoing workforce development services.

 

Young Community Developers

 

On August 29, 2008, YCD was sent a formal letter from MOCI notifying them of their non-compliance with both the Agency’s Work Plan and the conditions set forth in their 2007-2008 Contract.  This letter was sent after regular and follow up site visits where MOCI staff noted concerns regarding contract compliance.  The primary issues included consistent tardiness of data entry into MOCI’s online tracking system and a lack of clear and complete backup documentation for client intakes, referrals and placements.  Without adequate data or backup files, MOCI staff was unable to formally verify reasonable progress towards the 2007-2008 Work Plan goals. 

 

Since that time, MOCI has verified that YCD proceeded to meet program compliance for the remaining months of the Contract in the following ways: (1) providing data in a timely manner into MOCI’s on-line data tracking system; (2) submitting a monthly cover sheet outlining how many clients were served; (3) providing back-up documentation (intake, referral, placement materials) for each client served.


 

Agency Commissioners                                                                                            108-033.09-002

Page 3                                                                                                    Meeting of March 17, 2009

 

 

Currently, YCD has continued in its role as a primary partner in the implementation of the Agency’s Construction Workforce Program.  Based on feedback from the Agency’s Contract Compliance staff, a construction coordinator continues to attend mandatory preconstruction meetings and assists the Agency’s contract compliance specialists in explaining the workforce program and outlining the “good faith effort steps” contractors should follow to meet the workforce local hiring goals. 

 

Other City Relationships (City Build)

 

The Agency, YCD and CityBuild work collaboratively during the construction workforce process. YCD is under contract with the Mayor’s Office of Workforce Development (MOWD) to provide three distinct services to CityBuild:  They include:  1) Conduct outreach, recruitment, and assessment for potential CityBuild candidates; 2) Case management services once candidates are accepted into CityBuild, and; 3) Job retention services.  Currently MOWD has an annual contract with YCD in the amount of $180,000.  This contract is 90% exhausted as of 3/10/09.  To assist in the joint Agency/City effort to stabilize YCD, MOWD is currently working an additional contract that will increase its funding to YCD by $100,000. MOWD expected to execute this contract in the next 30 days.

 

Proposed Second Amendment to the Amended and Restated Letter Agreement with MOCI

 

Given YCD’s overall improved compliance, coupled with their continued supportive role in implementing the Agency’s Construction Workforce Program, Agency staff seeks to include YCD in the current letter agreement with MOCI.  The terms of this agreement will remain unchanged. The Agency seeks to add YCD to the agreement and reimburse this community-based organization (“CBO”) retroactively for work performed in January and February 2009.  Therefore, the proposed Second Amendment to the Amended and Restated Letter Agreement providing business assistance and employment development services will again include five CBOs.

 

  1. South of Market Foundation, doing business as Urban Solutions for South of Market Redevelopment Project Areas;

 

  1. Asian Neighborhood Design for the Sixth Street Economic Revitalization Program in the South of Market Redevelopment Project Area;

 

  1. Renaissance Entrepreneurship Center for the South of Market, Bayview-Hunters Point, Yerba Buena Center and India Basin Industrial Park Redevelopment Project  (Area C) areas; and

 

  1. Mission Hiring Hall for the Mission Bay North, South of Market, Yerba Buena Center, and Rincon Point-South Beach Redevelopment Project Areas.

 

Agency Commissioners                                                                                            108-033.09-002

Page 4                                                                                                    Meeting of March 17, 2009

 

  1. Young Community Developers for Mission Bay South, Hunters Point Naval Shipyard, Bayview Industrial Triangle, and Bayview Hunters Point Redevelopment Project Areas

 

A summary of the proposed scope of services for MOCI and all five CBOs for the contract period are attached as Attachment “A.”

 

California Environmental Quality Act (“CEQA”)

 

The addition of Young Community Developers as a contractor to MOCI under the Agreement and the provision of administrative support to businesses and job seekers, and construction monitoring of physical improvements to properties are not projects as defined by California Environmental Quality Act (“CEQA”) Guidelines Section 15378(b)(5), and would not result in any physical change in the environment.  The provision of technical studies under the Agreement to facilitate façade and tenant improvement projects are feasibility and planning studies that would not independently result in a physical change in the environment and are statutorily exempt from CEQA pursuant to CEQA Guidelines Section 15262.

 

 

Proposed Six-Month Budget

 

Business Assistance

Urban Solutions

SOMA Project Area (Business Development)                       $323,941

Asian Neighborhood Design

SOMA Architectural Services                                                     50,000

RenaissanceEntrepreneurship Center

South of Market (Business Incubator)                                       $67,000

Bayview Business Resource Center                                          194,520

Subtotal                                                                                   $261,520

Total - CBOs                                                                           $635,461

MOCI Administrative Fees                                                       $95,319 

Total – Business Assistance                                                   $730,780

 

Employment Development                                                                    

                                   

Mission Hiring Hall                                                                 $205,858

Young Community Developers                                              $142,740

Total - CBOs                                                                            $348,598

MOCI Administrative Fees                                                       $52,290 

Total – Employment Development                                       $400,888


 

Agency Commissioners                                                                                            108-033.09-002

Page 5                                                                                                    Meeting of March 17, 2009

 

 

The total budget contemplated under this proposed Agreement with MOCI for business assistance and employment development services is $1,131,668. 

 

 

 

Originated by Angela Heyward, Development Specialist, and

Stephen Maduli-Williams, Deputy Executive Director of Community & Economic Development

 

 

 

Fred Blackwell

Executive Director

 

 

Attachments:

            Attachment “A”:                     Proposed Scope of Services and YCD Work Plan

 

 

 


 

ATTACHMENT A

 

Proposed Scope of Services and YCD Work Plan

(January 1, 2009 through June30, 2009)

 

MOCI will provide the following services:

 

  1. .  MOCI will administer its grant agreements (“CBO Contracts”) with Urban Solutions, Asian Neighborhood Design, Renaissance Entrepreneurship Center, Mission Hiring Hall, Inc., and Young Community Developers (each a “CBO”) for the period of January 1, 2009 to June 30, 2009.  MOCI agrees to add the changes specified herein to each CBO Contract. 

 

  1. .  MOCI will obtain prior approval from the Agency, if MOCI believes that it is necessary or appropriate to amend its CBO Contract with any CBO for reasons other than to include the provisions required by this Second Amendment to the Amended and Restated Letter Agreement (“Agreement”). If MOCI’s evaluation shows that any such amendment requires additional funds, MOCI will obtain prior Agency written approval. 

 

  1. .  MOCI shall incorporate the following provisions in the CBO Contracts.

     

A.        Conflicts.  In order to carry out the purposes of this Section, MOCI shall cause to be attached or incorporated in all CBO Contracts executed pursuant to this Agreement, a provision substantially similar to the following: 

 

  1. .  All employees, agents, contractors, officers and officials of the [insert name of CBO] who exercise any functions or responsibilities with respect to this Agreement (singly and collectively referred to as “Contractor”) shall be subject to the conflict of interest and duty of loyalty obligations contained in Section III A. (2) and (3). 

 

  1. .  Except for approved eligible administrative or personnel costs, no employee, agent, contractor, officer or official of the Agency who exercises any functions or responsibilities with respect to this Contract or who is in a position to participate in a decision making process or gain inside information with regard to it, shall obtain a personal or financial interest in or benefit from any contract, subcontract or agreement with respect thereto, or the proceeds therein, either for himself or herself or for those with whom they have family or business ties, during his or her tenure or for two years thereafter.  The term “Contractor” also includes the employees, officers (including board members), agents and subcontractors of each CBO.  In order to carry out the purposes of this Section, MOCI shall incorporate, or cause to be incorporated, in all contracts and subcontracts relating to activities pursuant to this Second Amendment to the Amended and Restated Letter Agreement, a provision similar to that of this Section.

 

(3)        Duty of Loyalty.  Contractor (as defined in Section III A. (1)) agrees to abide by the Agency’s duty of loyalty, which appears at Section IX.H. (Prohibited Activities of Present and Former Employees, Commissioners and Consultants) of the Agency’s Personnel Policy and which states in part the following: “Unless approved in advance in writing by the [Redevelopment] Agency, no present or former employee, Commissioner or consultant of the [Redevelopment] Agency shall knowingly act for anyone other than the Agency in connection with any particular matter in which the [Redevelopment] Agency is a party, or has a direct and substantial interest, and in which he or she participated personally and substantially as an Agency employee, Commissioner or consultant whether through decisions, recommendations, advice, investigation or otherwise.  Violation of this section by a present employee, consultant or Commissioner may, in the case of an employee or consultant, be grounds for discharge or termination of the consultant contract, and in the case of a Commissioner, be considered misconduct in office pursuant of California Health and Safety Code Section 33115.

 

B.        Designated Redevelopment Project Areas.  Project Areas designated in the CBO Contract, as such areas currently exist or may be hereafter amended, are hereafter singly and collectively referred to as the “Designated Redevelopment Project Area(s).” The Agency will not pay for any costs related to providing loan packaging and technical assistance to businesses located outside of a Designated Redevelopment Project Area, unless otherwise approved in writing by the Agency.

 

  1. . CBOs must submit any proposed change in a Work Plan to MOCI for joint review and approval by MOCI and the Agency. 

 

  1.   In accordance with the Urban Solutions Work Plan for South of Market Redevelopment Project Area Sixth Street Economic Revitalization Program, provides for the aggregate payment of no more than $323,941 for the following services:  marketing and implementing the Six on Sixth Revitalization Loan Program (“Six on Sixth Program”), managing façade and tenant improvement projects and coordinating business attraction efforts.  In addition, Urban Solutions will provide one-on-one small business consulting, loan packaging services, post-loan technical assistance and support for the South of Market Business Association (SOMBA).  The Six on Sixth Program was described in Commission Memoranda dated November 19, 2002, November 26, 2002, and on September 20, 2005, by Agency Resolution No. 145-2005, the Agency Commission authorized the changes in participation, loans to businesses and property owners; and loan amounts to allow greater participation and simplify the Six on Sixth Program.

 

  1.   In accordance with the Asian Neighborhood Design Work Plan for South of Market Redevelopment Project Area, the CBO contract with Asian Neighborhood Design (“AND”), an architectural firm shall provide the following services:  design assistance for facade and tenant improvement projects to interested businesses, property owners and non-profit organizations within the South of Market Redevelopment Project Area.  In addition, AND agrees to monitor construction through project completion under Urban Solutions’ direction to ensure that projects are completed according to approved plans and specifications.

 

  1. The CBO Contract with Renaissance shall include the following provisions:

 

  1. :  In accordance with the Renaissance Entrepreneurship Center Work Plan for South of Market and Yerba Buena Center Redevelopment Project Areas, the Renaissance CBO Contract shall provide for an aggregate payment of no more than $67,000 to Renaissance for services to businesses in Yerba Buena Center and South of Market Redevelopment Project Areas.  Services include marketing, business development and one-on-one technical assistance.  Services will be provided through the business incubator program.

 

B.  Bayview Business Resource Center Services:  In accordance with the Renaissance Entrepreneurship Center Work Plan for Bayview Business Resource Center, Bayview Hunters Point Redevelopment Project Area, the Renaissance CBO Contract shall provide for an aggregate payment of no more than $194,520 to Renaissance for services provided by Renaissance through its Bayview Business Resource Center.  Services include small business improvement assistance, assistance with marketing and promotional activities and the creation of local business retention programs.

 

  1. In accordance with the Mission Hiring Hall Inc.’s South of Market Employment Center Work Plan for the Mission Bay North, South of Market, Yerba Buena Center and Rincon Point-South Beach Redevelopment Project Areas,the CBO Contract with Mission Hiring Hall, Inc. shall provide for an aggregate payment of no more than $205,858 to Mission Hiring Hall, Inc. for the following services: provide employment and training services to low- and moderate-income residents in the South of Market, Yerba Buena Center, Mission Bay North and Rincon Point-South Beach Redevelopment Project Areas.

 

  • Contract with Young Community Developers.  In accordance with the Young Community Developers Work Plan for Mission Bay South, Hunters Point, Hunters Point Naval Shipyard, Bayview Industrial Triangle India Basin, and Bayview Hunters Point Redevelopment Project Areas,  the CBO Contract with Young Community Developers shall provide for an aggregate payment of no more than $142,740 to Young Community Developers for the following services:  provide employment and training services to low- and moderate-income residents in the Mission Bay South, Hunters Point, Hunters Point Naval Shipyard, Bayview Industrial Triangle, India Basin and Bayview Hunters Point Redevelopment Project  Areas, and to provide referrals in support of the Agency Work Force Program.

 

  1.   MOCI shall develop, as needed, or upon Agency request, forms and reporting procedures necessary to track and evaluate work program activities and outcomes, to assure that the Agency funds specified in this Agreement for each CBO Contract are spent within or benefit the Designated Redevelopment Project Areas. 

 

  1.   MOCI shall provide technical assistance to CBO staff regarding reporting, services, and performance.  MOCI will work with CBOs such as South of Market Employment Center, to coordinate the delivery of workforce development services.

 

  1.   MOCI shall provide quarterly reports to the Agency evaluating the performance and fiscal reimbursement of CBOs, and meet quarterly, and as needed, with Agency staff to discuss the performance of each CBO.  For the employment services providers, MOCI shall maintain a management information system on CBOs contract outcomes, including placements in permanent and construction jobs, 30 days retention in workplace, wage rates, residency, and other relevant data on the participants served by CBOs.  MOCI shall make payments to CBOs within 30 days upon receipt of a satisfactory invoice.


 

 

 

Young Community Developers Work Plan for Mission Bay South, Hunters Point Naval Shipyard, Bayview Industrial Triangle, and Bayview Hunters Point Redevelopment Project Areas

 

WORKFORCE DEVELOPMENT

 

Young Community Developers (“YCD”) will provide workforce development services in support of the Agency’s Workforce Program that will utilize a specifically developed pool of job-ready applicants for (1) construction job referrals to contractors on projects funded by the Agency, and (2) general employment referrals to retail and commercial enterprises for permanent jobs located in buildings that are part of a development funded by the Agency in the Mission Bay South, Hunters Point Naval Shipyard, Bayview Industrial Triangle, and Bayview Hunters Point Redevelopment Project Areas (“Designated Project Areas”).

 

YCD’s responsibilities include, but are not limited to:

 

  1.   Placing low- and moderate-income Designated Project Area and San Francisco residents in general employment and construction jobs as apprentices, journey level workers or new indentures through CityBuild Academy’s 14-week pre-apprenticeship program.  YCD will work with one or more of the various One Stop Centers as part of the workforce development services recruitment strategy.

 

2.         Working with CityBuild to assist YCD candidates obtain qualification criteria for CityBuild Academy’s pre-apprenticeship program, including job readiness training and skills assessment. 

 

3.         Providing workforce development and compliance assistance services to employers located in any of the Agency’s Designated Project Areas. These services include recruitment and screening of job applicants, staffing and facilitation of application and interview process.  YCD will also provide job placement referrals and follow-up services including generating reports of outcomes specific to each employer.

 

OUTREACH AND RECRUITMENT

 

Program priority is given to participants who are unemployed or underemployed low- income or moderate-income residents of the Designated Project Areas.  If low- or moderate-income Designated Project Area residents are not identified for referrals to redevelopment project areas employment opportunities, YCD will refer program participants from the boundaries of the project areas of collaborating CBO partners. 

 


 

 

JOB PLACEMENT AND OTHER SERVICES

 

YCD will operate a Direct Job Placement Program for low- and- moderate income residents of San Francisco with special focus on individuals living in the Designated Project Areas.  YCD will recruit, refer and monitor placement of eligible residents to job opportunities created by the Agency’s major development projects in the Designated Project Areas by:

 

1.         Providing referrals for construction employment for construction or rehabilitation projects that are in Designated Project Areas or projects funded by the Agency.

 

2.         Providing referrals for general employment positions with employers who are contractors or subcontractors for a construction or rehabilitation project that is located within any of the Designated Project Areas or funded by the Agency; and post-construction general employment positions with retail employers or commercial enterprises that are located in buildings that are part of a construction or rehabilitation project funded by the Agency.

 

3.         Monitoring placements by counting eligible Designated Project Area residents who are hired as placements on the first day of unsubsidized construction or general employment.  YCD will follow-up meetings with participants will occur regularly up to 30 days after participants are placed and will provide reports on a monthly basis listing number of clients recruited, assessed and referred for employment.  In addition, job readiness, work skills training or other support services will be offered.  YCD will report the number of participants referred to each employer, the number of participants interviewed and hired and the number of participants still employed by the original employer after 30 days.

 

4.         YCD will coordinate with Agency staff to ensure distribution of quarterly progress reports to the Bayview Hunters Point Project Area Committee (“PAC”) Meetings followed up by attendance at PAC meetings to answer questions.

 

PROPOSED OUTCOME

 

YCD will serve as an access point for the Agency’s targeted populations and as for Agency-assisted developers, their subcontractors and their retail and commercial tenants to help them meet “good faith effort” requirements for outreach and meet other workforce compliance goals.

 

In working with various City Agencies and CityBuild Academy, listed below are the proposed six (6) month outcomes:

Recruit project area and SF residents for employment and training opportunities:               300

Provide intake and assessment services:                                                                                 175

Refer job ready applicants to employment opportunities:                                                      300

Refer program participants to job readiness training or other support service:                         40

Recruit and assess pre-apprentice candidates for CityBuild Academy:                                   30

Provide job readiness training and enroll candidates in CityBuild Academy:                           5

                                                                                                                                                ___

Placements                                                                                                                             100

 

 

RESOLUTION NO.  31-2009

 

 

AUTHORIZING A SECOND AMENDMENT TO THE AMENDED AND RESTATED LETTER AGREEMENT WITH THE MAYOR'S OFFICE OF COMMUNITY INVESTMENT (“MOCI”) TO INCLUDE YOUNG COMMUNITY DEVELOPERS, A COMMUNITY-BASED ORGANIZATION OFFERING EMPLOYMENT DEVELOPMENT SERVICES, AND TO INCREASE THE COMPENSATION BY AN AMOUNT NOT TO EXCEED $164,151, FOR A TOTAL AGGREGATE AMOUNT NOT TO EXCEED $1,131,668 FOR THE ADMINISTRATION OF CONTRACTS WITH FIVE COMMUNITY-BASED ORGANIZATIONS TO PROVIDE BUSINESS ASSISTANCE AND EMPLOYMENT DEVELOPMENT SERVICES FROM JANUARY 1, 2009

TO JUNE 30, 2009; ALL REDEVELOPMENT PROJECT AREAS

 

BASIS FOR RESOLUTION

 

  1. To further the Redevelopment Agency of the City and County of San Francisco’s (the “Agency”) economic development efforts in various redevelopment project areas, the Agency entered into a letter agreement with the Mayor’s Office of Community Investment (“MOCI”) on July 1, 2007 to contract with five community-based organizations (“CBOs”) to provide business assistance and employment development services for all redevelopment project areas until June 30, 2008.

 

  1.   These economic development efforts include:

 

  • Business assistance:  business technical assistance and loan packaging services to project area businesses and businesses that serve low- and moderate-income project area residents, and entrepreneurial training services to low- and moderate-income project area residents; and

 

  • Employment development:  employment development and training services in support of the Agency’s Workforce Program, including referrals of qualified low- and moderate-income project area residents to developers and their contractors for both construction and long-term employment.

 

  1.   The proposed Agreement runs from January 1, 2009 to June 30, 2009, and includes a budget in an amount not to exceed $967,517, subject to the appropriation of funds, to continue to provide business assistance and employment development services through four CBOs. These CBOs are:  (1) the South of Market Foundation, doing business as Urban Solutions; (2) Asian Neighborhood Design; (3) Renaissance Entrepreneurship Center; and (4) Mission Hiring Hall, Incorporated.

 

  1.   However, since December 2008, MOCI has verified that YCD was able to meet program compliance requirements for the remaining months of the 2008 contract in the following ways:  (1) providing data in a timely manner into MOCI’s on-line data tracking system; (2) submitting a monthly cover sheet outlining how many clients were served; and (3) providing back-up documentation (intake, referral and placement materials) for each client served.  Furthermore, YCD has continued its role as a primary partner in the implementation of the Agency’s Construction Workforce Program.

 

  1.   In accordance with this Agreement, the Agency seeks to reimburse YCD retroactively for work performed in January and February 2009.

 

  1.   The provision of technical studies under the Agreement to facilitate façade and tenant improvement projects are feasibility and planning studies that would not independently result in a physical change in the environment and are statutorily exempt from CEQA pursuant to CEQA Guidelines Section 15262.

RESOLUTION

 

ACCORDINGLY, IT IS RESOLVED by the Redevelopment Agency of the City and County of San Francisco that the Executive Director is authorized to enter into a Second Amendment to the Amended and Restated Letter Agreement with the Mayor’s Office of Community Investment to include Young Community Developers, a community-based organization offering employment development services, and to increase the compensation by an amount not to exceed $164,151, for a total aggregate amount not to exceed $1,131,668 for the administration of contracts with five community-based organizations to provide business assistance and employment development services from January 1, 2009 to June 30, 2009, substantially in the form lodged with the Agency General Counsel.

 

APPROVED AS TO FORM:

 

 

_________________________

James B. Morales

Agency General Counsel

450-008.09-002                                                                     Agenda Item No. 4 ( g & h )

                                                                                                 Meeting of March 17, 2009

 

 

TO:                  Agency Commission

 

FROM:            Fred Blackwell

                         Executive Director

 

SUBJECT:    Approving a schematic design for improvements to Building 101 at the Hunters Point Shipyard; Hunters Point Shipyard Redevelopment Project Area.

 

Authorizing a First Amendment to the Personal Services Contract with Levy Design Partners, Inc., a California corporation, to increase the Contract amount by $150,000, for a total aggregate amount not to exceed $250,000, and to amend the scope of services to include final construction drawings and construction administration support for improvements to Building 101; Hunters Point Shipyard Redevelopment Project Area.

 

EXECUTIVE SUMMARY

 

Agency staff engaged in a competitive negotiation process and solicited proposals for schematic design, preliminary construction documents, bid and construction observation for the rehabilitation of Building 101 at Hunters Point Shipyard (“Shipyard”). The design and physical improvements to Building 101 on the Shipyard will be funded from a $2.13 million grant from the United States Department of Commerce, Economic Development Administration (“EDA”), which must be spent no later than August 15, 2009. In order to accelerate personal services contract approval by the EDA and allow architectural and engineering work to begin on Building 101 in the shortest amount of time, Agency staff sought to execute the Contract in two phases. The EDA allows for an expedited solicitation process for contracts of up to $100,000.

 

At its January 6, 2009 meeting, Agency Commission authorized a Personal Services Contract with Levy Design Partners, Inc. (“Levy”) in the amount of $100,000 to begin the first phase of design work. By the March 17, 2009 Agency Commission meeting, Levy will have hosted three workshops with Building 101 stakeholders and members of the Shipyard Citizens Advisory Committee (“CAC”) to develop schematic designs for the improvements to be funded under this application. (See Attachment A.)

 

Agency Staff recommends approval of the attached schematic designs, and authorization of a First Amendment to the Personal Services Contract with Levy to allow Levy Design Partners to provide construction drawings and construction administration services in addition to the preliminary design work included in its original Contract. The expanded scope and budget will allow Levy to ensure timely completion of Building 101 improvements and responsible use of important federal support for the Shipyard.

 

Staff seeks authorization of a First Amendment to the Contract with Levy Design Partners to increase the budget by $150,000, for a total aggregate Contract amount not to exceed $250,000 subject to the approval of proposed schematic designs.

 

Staff is also seeking approval of schematic designs for improvements to Building 101.

 

DISCUSSION

 

Building 101 is regarded as the hub of the artists’ community (“Artists”) on the Shipyard. Of the nearly 300 artists working on the Shipyard, 141 of them rent studios within Building 101. The Shipyard’s Redevelopment Plan (the “Plan”), approved in 1997, calls for support of the existing businesses and Artists on the Shipyard. Building 101 is a critical component in the Agency’s strategy to restore the Shipyard’s role in supporting the economic vitality of the Bayview Hunters Point Community (“BVHP”). Building 101 will help to define a future Arts District for the Shipyard which seeks to attract cultural visitors to the Shipyard and to directly engage BVHP residents and businesses in the production, sale, and promotion of art. Building 101 would serve as a landmark hub for the soon to be established Shipyard Arts District and help to distinguish residential and commercial development in the Phase 2 development.

 

EDA Grant Funds

 

The EDA grant to be used for Building 101 must be spent no later than August 15, 2009, and extensions are not allowed. Using EDA funds to provide tangible and meaningful benefits to the Shipyard within this tight timeframe is important in demonstrating the Agency’s capacity to manage existing and future EDA grant funds. Agency staff is working to ensure that the EDA funds are expended using an expeditious and inclusive process that meets the needs of present and future Shipyard stakeholders. The initial EDA contract was submitted under EDA’s expedited solicitation process for contracts up to $100,000; amendments to this contract will be approved quickly, even if they exceed the $100,000 threshold.

 

Schematic Designs

 

In January and February 2009, Levy held two workshops and numerous smaller meetings with Building 101 Artists, the CAC, Agency staff and staff from the Mayor’s Office of Economic and Workforce Development to identify, price and prioritize improvements to Building 101. Through this process, Levy identified the following list of near-term improvements needed to ensure that the building continues to be an important part of the Shipyard Arts District:

 

  • Exterior Repainting
  • Corridor repainting and replacement of common area light fixtures
  • Code Issues (exit stairs, accessible entry, elevator, etc.)
  • Repair/Replacement of Windows
  • Replace Exterior Doors
  • New gallery and lounge
  • Hot water installation ("InstaHot")

 

The improvements will be bid in a two-step process. Regular improvements that do not require building permits, such as painting, fixture upgrades, and replacement of windows will be let to bid within the next 30 days.

 

Attachment A provides illustrative information on proposed improvements to the Building. Staff finds that the schematic design submission for Building 101 complies with the Shipyard Plan, the Shipyard Design for Development and draft documents related to Phase 2 planning for the Shipyard which describe the building’s role in a future Arts District. The proposed upgrades will retain the character and use of the building and assure that Building 101 is integrated in the future Hunters Point Shipyard.

 

Contract Amendment

 

The proposed Contract amendment will enable Levy to continue architecture and engineering work on the Building 101 improvements on an accelerated timeline. Though the original solicitation process for an Architecture and Engineering consultant sought proposals for the full scope of architecture and engineering service, Agency staff initiated work on the project with a reduced scope and budget in order to expedite the review of the Contract by the EDA. Agency staff is recommending the approval of a First Amendment to the Contract to include the remainder of the work as intended in the Agency’s original solicitation. (See Attachment A.)

 

 

California Environmental Quality Act

The First Amendment to the Contract with Levy is statutorily exempt from the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines Section 15262. The services completed under the Contract are planning and feasibility studies leading to the rehabilitation of Building 101 and would not independently cause any significant physical change in the environment.  The provision of construction-related administrative support during the implementation of the project would not have any direct physical effects and is exempt pursuant to CEQA Guidelines Section 15061(b)(3).

 

 

Originated by Thor Kaslofsky, Project Manager

 

 

Fred Blackwell

Executive Director

 

 

Attachments:

 

  1. Schematic Designs for Improvements to Building 101
  2. Amended Scope of Services and Budget

 

 


 

ATTACHMENT 2

AMENDED Scope of Services and budget

 

 

 

Task 1: Scope Development.

Conduct site visits and work with Agency staff to describe the existing conditions of the building and provide a short summary of opportunities for remedial upgrades and improvements. Present existing conditions summary to Agency staff and conduct a preliminary design workshop with the Agency and the Shipyard artists to establish the improvements program. Provide an order of magnitude cost estimate to the Agency.

January 16, 2009          Task 1: Scope Development                                       $20,000

 

Tasks 2 and 3: Schematic Design.

Develop proposal for rehabilitation as determined in Task 1and provide illustrative materials such as sketches, perspective renderings and other appropriate materials to illustrate the proposed work. Develop preliminary cost estimates for the improvements proposed. Review Schematic Design and refined cost estimates with Agency staff and then with Building 101 artists, the CAC and the Agency Commission for approval. This process should also identify potential future upgrades and improvements that should be made in concert with development of the Shipyard. Improvements identified for immediate implementation should be designed to compliment or support later phase improvements.

January 30, 2009          Task 2: Preliminary Schematic Design and Budget    $15,000

February 27, 2009        Task 3: Completion of Schematic Design                   $30,000

 

Task 4: Preliminary Construction Documents.

Preliminary construction documents and outline specifications should include the outlined plans, elevations, sections and details sufficient to describe the work, updated cost estimates, general architectural character, aesthetic improvements and materials proposed at a scale appropriate to fully explain the work. In addition, the Consultant should provide colored elevations and a materials board with samples of the proposed materials and colors to the Agency for its review. Presentation and update on the progress of the Preliminary Construction Drawings to the Building 101 artists and CAC.

March 30, 2009            Task 4: Preliminary Construction Documents            $35,000

 

Task 5: Final Construction Documents, Specifications and General Conditions.

Drawings shall be at the construction documents level of detail and any other details required at this stage of design documentation should be complete. The drawings and specifications should be prepared in sufficient detail to permit bid and construction of the project. This task shall also include survey of surrounding buildings as necessary including developing preliminary cost estimates for Building 813.

May 30, 2009              Task 5: Final Construction Drawings                         $75,000

 

 

 

 

Task 6: Bid and Construction Observation.

Parallel to the design process the consultant shall facilitate the solicitation of a contractor to complete the proposed repairs. The consultant will work with Agency staff to issue an RFP for contractor services, obtain Agency approval and execute the contract so that construction may commence by May 2009. It is expected that the A&E Consultant will work closely with the contractor to implement construction drawings. The Consultant shall provide review support throughout the construction bid process and technical advice and monitoring throughout the completion of improvements to the building.

December 31, 2009     Task 6: Bid and Construction Observation.               $75,000

 

 

TOTAL                       $250,000

 

 

 

*Note:    Amounts are to be paid upon the completion of the above Tasks of the Contract and once Contractor submits invoice to Agency for processing. The actual compensation is subject to approval by Agency staff.

 


 

ATTACHMENT A Schematic Design for Improvements to Building 101 (Under Separate Cover)


 

 

RESOLUTION NO. 32-2009

 

 

 

APPROVING A SCHEMATIC DESIGN FOR IMPROVEMENTS
TO BUILDING 101 AT THE HUNTERS POINT SHIPYARD;
HUNTERS POINT SHIPYARD REDEVELOPMENT PROJECT AREA

 

 

BASIS FOR RESOLUTION

 

  1.   The 106,000 square-foot, two-story wood-framed building was constructed in 1946 and originally housed the United States Department of the Navy’s administrative offices.  Since the mid 1980’s artists have occupied studios in various buildings on the Shipyard.
  2. Building 101 is the largest building on Parcel A and is regarded as the hub of the artists’ colony.  Of the nearly 300 artists working on the Shipyard, 141 of them rent studios within Building 101.  Building 101 studios are rented through a sub-lessee agreement with the artists’ community to Patterns Limited, Inc. (“The Point”) and Lennar–BVHP, LLC (“Lennar”).  Lennar manages the leases of various buildings on the Shipyard, including Building 101, on behalf of the Redevelopment Agency of the City and County of San Francisco (“Agency”) in accordance with the Interim Lease that was adopted in December 2003 and amended in August 2008.
  3. In 2004, the Agency was awarded a grant for $2,134,000 from the U.S. Department of Commerce, Economic Development Administration (“EDA”).  The purpose of the grant funds is to facilitate the assessment, design, remediation, and basic improvements to Building 101.  The EDA grant to be used for Building 101 must be spent no later than August 15, 2009, and extensions are not permitted.  Using EDA funds to provide tangible and meaningful benefits to the Shipyard within this tight timeframe is important in demonstrating the Agency’s capacity to manage existing and future EDA grant funds.  Agency staff is working to ensure that the EDA funds are expended using an expeditious and inclusive process that meets the needs of present and future Shipyard stakeholders.
  4. In December 2008, Agency staff engaged in a competitive negotiation process and solicited proposals for Schematic Design, Preliminary Construction Documents, Bid and Observation for Building 101 construction activities.
  5. On January 6, 2009, by Resolution No. 8-2009, the Agency Commission authorized a one-year personal services contract (“Contract”) and operating budget in the amount of $100,000 with Levy Design Partners, Inc., a California corporation (“Levy”).  Levy’s current scope of services under the Contract includes schematic design and preliminary construction documents.
  6. Levy has held two workshops and numerous smaller meetings with the Building 101 artists, the Hunters Point Shipyard Citizens Advisory Committee, Agency staff and staff from the Mayor’s Office of Economic and Workforce Development to identify and prioritize improvements to Building 101.
  7. Levy has submitted schematic designs for the rehabilitation of Building 101 for Agency staff’s review and approval.
  8. The proposed schematic design (“Schematic Design”) includes exterior repainting, corridor repainting and replacement of common area light fixtures, code-related upgrades (exit stairs, accessible entry, etc.), repair/replacement of windows, replacement of exterior doors, and a new gallery and lounge.
  9. The permitted uses and development standards pertaining to Building 101 are described in the Hunters Point Shipyard Redevelopment Plan (“Redevelopment Plan”) and the Design for Development.
  10. Agency staff has reviewed the proposed Schematic Design and finds that it complies with the permitted uses and development standards described in the Redevelopment Plan and the Design for Development.
  11. Agency staff recommends approval of the Schematic Design proposed by Levy.

 

RESOLUTION

 

ACCORDINGLY, IT IS RESOLVED by the Redevelopment Agency of the City and County of San Francisco that the Schematic Design for Building 101 at the Hunters Point Shipyard is approved in the form submitted by Levy Design Partners, Inc., and presented to the Agency Commission, together with such refinements as the Executive Director may approve which do not substantially alter the Schematic Design concept.

 


APPROVED AS TO FORM:

 

 

 

_________________________

James B. Morales

Agency General Counsel


 

 

RESOLUTION NO. 33-2009

 

 

 

AUTHORIZING A FIRST AMENDMENT TO THE PERSONAL SERVICES CONTRACT WITH LEVY DESIGN PARTNERS, INC., A CALIFORNIA CORPORATION, to INCREASE the contract amount BY $150,000, FOR A TOTAL AGGREGATE AMOUNT NOT TO EXCEED $250,000,

AND TO amend the scope of services to include final construction drawings and construction administration support for improvements to Building 101; Hunters Point Shipyard REDEVELOPMENT Project Area

 

 

BASIS FOR RESOLUTION

 

  1.   The 106,000 square-foot, two-story wood-framed building was constructed in 1946 and originally housed the United States Department of the Navy’s administrative offices.  Since the mid 1980’s artists have occupied studios in various buildings on the Shipyard.
  2. Building 101 is the largest building on Parcel A and is regarded as the hub of the artists’ colony.  Of the nearly 300 artists working on the Shipyard, 141 of them rent studios within Building 101.  Building 101 studios are rented through a sub-lessee agreement with the artists’ community to Patterns Limited, Inc. (“The Point”) and Lennar–BVHP, LLC (“Lennar”).  Lennar manages the leases of various buildings on the Shipyard, including Building 101, on behalf of the Redevelopment Agency of the City and County of San Francisco (“Agency”) in accordance with the Interim Lease that was adopted in December 2003 and amended in August 2008.
  3. In 2004, the Agency was awarded a grant for $2,134,000 from the U.S. Department of Commerce, Economic Development Administration (“EDA”).  The purpose of the grant funds is to facilitate the assessment, design, remediation, and basic improvements to Building 101.  The EDA grant to be used for Building 101 must be spent no later than August 15, 2009, and extensions are not permitted.  Using EDA funds to provide tangible and meaningful benefits to the Shipyard within this tight timeframe is important in demonstrating the Agency’s capacity to manage existing and future EDA grant funds.  Agency staff is working to ensure that the EDA funds are expended using an expeditious and inclusive process that meets the needs of present and future Shipyard stakeholders.
  4. Agency staff engaged in a competitive negotiation process and solicited proposals for Schematic Design, Preliminary Construction Documents, Final Construction Documents and Observation of Construction for the rehabilitation of Building 101.

 

  1.  Levy’s current scope of services under the Contract includes schematic design and preliminary construction documents.

 

  1. The Contract was executed for a limited scope and in the amount of $100,000 in order to accelerate contract approval by EDA and thence to allow architectural and engineering work to begin on Building 101, so that the EDA funds may be spent by August 15, 2009.
  2. Agency staff has worked cooperatively with the Hunters Point Shipyard Citizens Advisory Committee’s (“CAC”) Planning and Development subcommittee, the artists and The Point, and they are in support of this project.  Levy will continue to collaborate with both the CAC and the existing Building 101 artists in the development of plans for the repair of Building 101.
  3. Agency staff is now seeking a first amendment to the Contract (“First Amendment”) to increase the budget and revise the scope of services to include Final Construction Documents and Observation of Construction for Building 101.
  4. The increased budget and the revised scope of services will enable Levy to provide construction drawings and construction administration services in order to ensure timely completion of the Building 101 improvements and expenditure of EDA funds.
  5. The Hunters Point Shipyard Redevelopment Plan (“Plan”), approved in 1997, calls for support of the existing businesses and artists on the Shipyard.  The Plan’s Statement of General Principles states that “future development should maintain the large community of artists and artisans on the Shipyard, providing for their need for flexible low-cost space, while accommodating the full diversity of arts and culture in the South Bayshore community.”
  6. Authorization of the First Amendment with Levy is statutorily exempt from the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines Section 15262.  The services completed under the Contract are planning and feasibility studies leading to the rehabilitation of Building 101 and would not independently cause any significant physical change in the environment.

 

 

RESOLUTION

 

ACCORDINGLY, IT IS RESOLVED by the Redevelopment Agency of the City and County of San Francisco that the Executive Director is authorized to execute a First Amendment to the Personal Services Contract with Levy Design Partners, Inc., a


 

California corporation, to increase the Contract amount by $150,000, for a total aggregate amount not to exceed $250,000, and to amend the scope of services to include final construction drawings and construction administration support for the rehabilitation of Building 101 at the Hunters Point Shipyard, substantially in the form lodged with the Agency General Counsel.

 

 

APPROVED AS TO FORM:

 

 

 

_________________________

James B. Morales

Agency General Counsel