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AGENDA ITEM REVIEW FORM |
6.C.
Regular City Council Meeting
- Meeting Date:
- 07/24/2024
- Department Head:
- Eulogio Vera
- Submitted By:
- Eulogio Vera, Director of Public Works, Public Works Department
Action Requested:
ITEM:
Discussion and possible action on any and all matters regarding accounting and disbursement under the development agreement with CDB Valley View Apartments that the City Council adopted on August 18, 2021, through Resolution No. 2193 on a project that provided for the development of public infrastructure improvements along 4th Avenue and affordable housing for those with low income. (Eulogio Vera, Public Works Director)
SUMMARY:
Background
CDB Valley View Apartments, L.P., completed the construction of an affordable housing project for low-income residents on North 1312 4th Avenue. This project was part of a low-income housing tax credit project, which is helping with San Luis's affordable housing needs.
As part of the project, 4th Avenue was reconstructed along the project frontage and north to the East Main Canal to provide adequate visibility for the driving public coming up the hill and drivers pulling out of the new Valley View Apartments driveways, therefore improving overall roadway safety. The location is one of the connectors to County 22nd Street for the shopping area at Wal-Mart.
On August 18, 2021, the City Council (via Resolution No. 2193) entered into a development agreement with CDB Valley View Apartments, L.P. Improvements were needed on 4th Avenue to change the slope and curve of the road. Changing the slope required lowering the waterline located in the right-of-way. The City Council committed to a $160,000.00 contribution towards the 4th Avenue improvements. At the time of the 2021 Council Meeting, the improvements were estimated to be in excess of $350,000.00.
Accounting
As part of the fiscal impact statement, Staff was to return to the City Council at a future date recommending accounts to be used to make the payment to CDB Valley View Apartments, L.P. to meet the City's commitment. The City has incurred expenses related to the project that will be deducted from the $160,000.00 before making the payment. Expenses are as follows:
Yuma County Water Users Association
Arizona State Land Department Land ("ASLD") Purchase Costs
Request
Now that the project is completed, the staff is returning to the City Council for approval to pay CDB Valley View Apartments, L.P. $120,484.16, of which $85,484.16 will be paid out of the fiscal year 2023–2024 funds and $35,000 out of the fiscal year 2024–2025 funds. The fiscal year 2024–2025 funds will cover work completed in this fiscal year.
CDB Valley View Apartments, L.P., completed the construction of an affordable housing project for low-income residents on North 1312 4th Avenue. This project was part of a low-income housing tax credit project, which is helping with San Luis's affordable housing needs.
As part of the project, 4th Avenue was reconstructed along the project frontage and north to the East Main Canal to provide adequate visibility for the driving public coming up the hill and drivers pulling out of the new Valley View Apartments driveways, therefore improving overall roadway safety. The location is one of the connectors to County 22nd Street for the shopping area at Wal-Mart.
On August 18, 2021, the City Council (via Resolution No. 2193) entered into a development agreement with CDB Valley View Apartments, L.P. Improvements were needed on 4th Avenue to change the slope and curve of the road. Changing the slope required lowering the waterline located in the right-of-way. The City Council committed to a $160,000.00 contribution towards the 4th Avenue improvements. At the time of the 2021 Council Meeting, the improvements were estimated to be in excess of $350,000.00.
Accounting
As part of the fiscal impact statement, Staff was to return to the City Council at a future date recommending accounts to be used to make the payment to CDB Valley View Apartments, L.P. to meet the City's commitment. The City has incurred expenses related to the project that will be deducted from the $160,000.00 before making the payment. Expenses are as follows:
Yuma County Water Users Association
| Encroachment License Application Fee | $ 750.00 |
| Construction of Headwall by the Association | $ 10,154.14 |
| Association's Inspection fees for work in their right of way | $ 1,701.75 |
Arizona State Land Department Land ("ASLD") Purchase Costs
| ASLD Land Purchase - 0.65 acres ($606,381.00*0.65/16.119) (prorated 0.65 acres out of the 16.119 acres total purchase) |
$ 24,452.36 |
| Environmental ($4,900.00*0.65/16.119) (prorated 0.65 acres out of the 16.119 acres total purchase) |
$ 197.59 |
| Core - Survey and Legal Description | $ 2,260.00 |
| Total City Incurred Expenses | $ 39,515.84 |
Request
Now that the project is completed, the staff is returning to the City Council for approval to pay CDB Valley View Apartments, L.P. $120,484.16, of which $85,484.16 will be paid out of the fiscal year 2023–2024 funds and $35,000 out of the fiscal year 2024–2025 funds. The fiscal year 2024–2025 funds will cover work completed in this fiscal year.
RECOMMENDATION / SUGGESTED MOTION:
I MOVE TO APPROVE THE PAYMENT OF $120,484.16 TO CDB VALLEY VIEW APARTMENTS, L.P. IN COMPLIANCE WITH RESOLUTION NO. 2193 DEVELOPMENT AGREEMENT AND APPROVE THE BUDGET TRANSFER AS STATED IN THE FISCAL IMPACT.
Fiscal Impact
- IS THERE FISCAL IMPACT ASSOCIATED WITH THIS ITEM:
- Yes
- CITY/STATE/FEDERAL FUNDS:
- City
- TOTAL:
- $120,484.16
- BUDGETED AMOUNT:
- See Fiscal Impact Statement
- AVAILABLE AMOUNT TO TRANSFER:
- See Fiscal Impact Statement
- ACCT NAME & GL#/REMAINING BALANCE BEFORE PURCHASE:
- See Fiscal Impact Statement
FISCAL IMPACT STATEMENT (IF THIS IS A BUDGET TRANSFER, YOU MUST ATTACH THE BUDGET ADJUSTMENT FORM):
We are requesting the City Council's authorization for the following budget transfers to allocate the expenses stated in the development agreement with CDB Valley Apartments, which the City Council adopted through Resolution No. 2193.
- FY 2024 - Transfer the amount of $85,484.16 from the City Council Contingency GL account 100-110-81000, which has a balance of $282,937.00, to the City Council Contractual Services GL account 100-110-80000.
- FY 2025 - Transfer the amount of $35,000.00 from the City Council Contingency GL account 100-110-81000, which has a balance of $300,000.00, to the City Council Contractual Services GL account 100-110-80000.