MINUTES OF BOARD MEETING BOARD OF DIRECTORS CAPITOL AREA DEVELOPMENT AUTHORITY. August 25, 2017
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1 MINUTES OF BOARD MEETING BOARD OF DIRECTORS CAPITOL AREA DEVELOPMENT AUTHORITY August 25, 2017 ITEM 1 ROLL CALL Chair Bailey called the meeting of the CADA Board of Directors to order at 9:00 a.m. at th Street, Sacramento, CA Present: Absent: ITEM 2 APPROVAL OF MINUTES: JUNE 23, 2017 (REGULAR); AUGUST 3, 2017 (SPECIAL) Member Otto moved approval of the minutes of June 23, 2017 Regular Meeting and the August 3, 2017 Special Meeting. Member Lagomarsino ITEM 3 CHAIR S ORAL REPORT No report. ITEM 4 EXECUTIVE DIRECTOR S ORAL REPORT Wendy Saunders reported the following: The events at the Bark Park were well-attended, with good press and social media traffic. Last month CADA staff, the Development and Construction Committee, and Cresleigh Homes traveled to Seattle to join Cresleigh s architects and local representatives to research for-sale condominium projects for the Site 21 project. The group was able to see what worked and what didn t work, such as common spaces for residents and the increase in delivery services. Due to the overwhelming amount of packages, there could be some design changes for the Site 21 lobby. Cresleigh Homes has not been planning on hiring a full-time staff but is reconsidering as result of the trip to Seattle. She has been involved in meetings with the central city PBIDs (R Street, Downtown Sacramento Partnership, Midtown Association, Broadway, and Visit Sacramento) about the increasing homeless population downtown. CADA staff attended the Law and Legislative committee hearing last week regarding a proposal being developed by the Police Department for a number of measures to address central city issues. Aggressive solicitation, park code violations, prohibiting camping were some of the items discussed. Wind Youth Services is a counseling and referral center for youth, and they have a lease with option to purchase at 8 th and S Streets, the same block as Beers Books. This is a controversial issue because Wind historically has a poor track record. She attended the PBID meeting yesterday and a representative of Wind has stated that they are now under the Goodwill umbrella which allows more financial stability and professionalized operations. City Assistant Manager John Dangberg attended the PBID meeting, and is interested in a good enforceable neighborhood policy. If she testifies or writes letters, she will send any drafts to the Board in advance for review and comment before submitting. Regarding the CADA office remodel, which will be discussed today, there is a bit of a sticker shock, but it s been 18 years since the office was refreshed, and the partitions and some of the furniture is over 30 years
2 old. The price includes 25% prevailing wage premium, and CADA has a good lease rate even with the added cost of the remodel. ITEM 5 OMBUDSMAN REPORT PRESENTED BY: BETTY GWIAZDON, CADA OMBUDSMAN Betty Gwiazdon, CADA s Ombudsman, provided an overview of tenant related issues. Ms. Gwiazdon complimented CADA staff for doing an excellent job in resolving tenant issues. ITEM 6 ANNUAL AFFIRMATION OF DELEGATION OF INVESTMENT AUTHORITY TO THE CITY TREASURER Staff Recommendation: Staff recommends that the Board adopt a resolution affirming delegation of investment authority to the City Treasurer. Staff Contact: Noelle Mussen, Controller Member Lagomarsino moved approval of Resolution 17-38, attached hereto and incorporated herein. Member Otto ITEM 7 APPOINTMENT OF FIFTH BOARD MEMBER Vice Chair Lagomarsino recused himself at 9:31 a.m. Staff Recommendation: Staff recommends that the Board adopt a resolution reappointing Mr. Robert Lagomarsino to the CADA Board-appointed seat, which expires August 16, Staff Contact: Marc de la Vergne, Deputy Executive Director Member Smith moved approval of Resolution 17-39, attached hereto and incorporated herein. Member Otto Maviglio, Otto, Smith, Bailey Vice Chair Lagomarsino returned at 9:37 am. ITEM O STREET ELECTRICAL WIRING PROJECT (1625 O STREET) Staff Recommendation: Staff recommends that the Board adopt a resolution authorizing the Executive Director to enter into a construction contract for the Electrical Wiring Project at 1625 O Street with Monster Contractor, Inc. in the amount of $134, Staff Contact: Tom VanSyoc, Facilities Maintenance Manager Member Lagomarsino stated that he is pleased to see that the upgrading of the wiring would eliminate safety issues. Ms. Saunders stated that this has been a major maintenance item for the past couple of years but
3 lacked the staffing to see this project through. Staff is pleased to see this project going forward and there will be more maintenance items of this nature in the near future. Member Smith moved approval of Resolution attached hereto and incorporated herein. Member Otto ITEM 9 CADA FLEX PLAN AND CALPERS HEALTH EMPLOYER CONTRIBUTIONS Staff Recommendation: Staff recommends the Board adopt a resolution approving setting the 2018 CADA Flex Plan and CalPERS Health Employer Contributions. Staff Contact: Jill Azevedo, Human Resources Manager Member Otto moved approval of Resolutions and 17-43, attached hereto and incorporated herein. Member Smith ITEM 10 CADA ADMINISTRATIVE OFFICE DESIGN AND REMODEL ( TH STREET) Staff Recommendation: Staff recommends that the Board adopt a resolution for the proposed CADA Administrative Office Remodel Project that authorizes the Executive Director to enter into a General Contracting Services Contract with Tricorp Group; a Design and Procurement Services Contract with DesignTech, and a Lease Extension with the Department of General Services. Staff Contact: Tom Kigar, Special Projects Director There was Board discussion about the finishes, such as the proposed carpet and vinyl mural as art in the office. Member Maviglio asked if staff can confirm the cap on expenditures, and if it s anticipated that there will be any change orders. Tom Kigar stated that the current scope of work is at a set required price, and any items that are outside of the current scope of work would require a change order. Member Maviglio moved approval of Resolution attached hereto and incorporated herein. Member Otto ITEM 11 ORAL STAFF REPORTS/UPDATES A. Downtown Sacramento Partnership: No update. B. Downtown Sacramento Revitalization Corporation: Wendy Saunders reported that the Downtown Sacramento Revitalization Corporation (DSRC) did meet. There is a deal on the table to renovate the
4 Marshall Hotel on L Street to a boutique brand of Hyatt. It s a $53 million project and the City will contribute the funds from the sale of two properties on K Street to DSRC which will then loan to the development project. There will be a Council vote on the proposal in September. C. Midtown Association: Wendy Saunders reported that there was a conversation regarding panhandling and anti-camping at the last Midtown Association meeting. D. Mercury Cleaners (Northeast Corner of 16th and O Streets): Marc de la Vergne reported that the State has finished work on injecting microbes and has installed additional test wells. E. Eviva Midtown (Northwest Corner of 16th and N Streets): Marc de la Vergne reported that staff is continuing to tweak the updated post-dda agreement regarding the tax increment being rebated to the seller. The agreement will be signed by all parties in the coming days. Staff has reviewed the proposed loan commitment, and the buyer expects to close a week from today. F. Roosevelt Park ( th Street): Marc de la Vergne reported that staff is working with the City on the design for the west end of the park. Grant proposals have been submitted to fund the design and other components, such as a proposed learning garden and public art referencing the history of Roosevelt Park, which used to be the epicenter of what used to be Japan Town. G. O Street Streetscape (7 th 17 th Streets): Staff is preparing a Request for Proposals (RFP) for the O Street conceptual plan. The matching funds that have been set aside are still be available to prepare the plan but will be on a reduced scale. DGS is working on designing a new office building on the 1200 block of O Street. DGS would like the designers to consult with CADA on the project. The final selection will be announced before the end of the calendar year. H. Other Neighborhood Improvements: No update. I. HCD LPR Application for Biele Place ( th Street): Marc de la Vergne reported that staff submitted all of the documents needed to submit to HCD in connection with refinancing the loan. J. Site 21 (14 th and N Streets): Tom Kigar reported that staff and the developer are refining design plans as a result of the trip to Seattle in July. CADA staff will host a focus group on Monday at L Street Lofts to discuss ideas people have for what they want to see in a condominium project. Staff has scheduled a meeting with the architect in San Francisco to see the design. There will be a community meeting with the stakeholders in October/November in time for the Board to approve the design in January The Disposition and Development Agreement will in place by June of next year. The project is making good progress and on schedule. K. Maintenance Department Updates: Tom Kigar reported that staff spent last month conducting physical inventory of appliances and materials as well as new work orders for all 750 apartments. This information will be used for the new maintenance software system. The consultant will finalize the timeline on software implementation and the project is on schedule. L. 16th Street Streetscape (N S Streets): Wendy Saunders reported that the City is going out to bid today on the construction of the storm water planters in Fremont Park. The project is still on schedule to start in October. M. Fremont Park (15 th /16 th & P/Q Streets): No update. N. R Street PBID: No update. O. Orchard Supply (17 th /R Streets): Wendy Saunders reported that six quarters of monitoring have been completed. GHD has located and repaired the missing and damaged well which was covered up during the Phase II Streetscape Project. There was some damage that was discovered in the well that will make the closing of the well somewhat tricky. This damage may result in spending more of the trust funds depending on how the County wants to address the closure.
5 P. R Street Streetscape Phases III and IV (13 th 16 th Streets): Wendy Saunders reported that the project is moving forward. The final approval of the project and construction contract will be on September 12th. Once the contractor is on board there will be a decision on whether to move forward during the Winter or wait until Spring. Council approval of the project on September 12 will also include going back to the original design and removing the trees on the 1300 Block and the 1500 block. City Staff is utilizing the existing tree ordinance for the City to reconsider removal of these trees; this could cause some controversy as a result. This tree removal effort is being led by the City Council Member Hansen and the property owners. CADA staff is supportive as the return to the original design and replacement of the trees on these blocks makes for a better long term streetscape design and a better approach to the long-term management of these trees on R Street. Q. R Street Affordable Housing (1717 S Street): Wendy Saunders reported that staff continues to work on the Cap and Trade components of the financing application. The current timeline of this round was pushed until January 2018, which is disappointing, but staff will continue to work on the application. However, CACDC and CFY are investigating an alternative plan to either allow CADA to move forward sooner or at the very least have a contingence plan in case the Cap and Trade funds are denied. The remediation began on Thursday and the work on the first day went better than anticipated. The contractor anticipated 4-5 injections per day given the experience at Orchard, but the soil conditions at 1717 S Street are better. If the conditions remain the same, GHD will be able to get 5-7 injections done per day. That will save time which is important in terms of starting the monitoring period and being able to open the site for construction. R. Brooks Truitt Dog Park (19 th /Q Streets): Wendy Saunders reported that the substantial construction work has been finished and the park is now open. The only significant remaining construction item is the permanent park signage, which will be completed in early September. There are also some follow up items for Brightview to complete at the City s request, and the items are being addressed. The park has been well received and has been very well utilized throughout the day depending on the temperature. CADA will continue to help the PACK, Midtown Association, and the City Parks Department in maintaining the park. Fundraising is underway for permanent shade structures. S. R Street Parking Structure (8 th /9 th Streets): Wendy Saunders reported that the project is moving ahead as planned. CADA and DGS have finalized the program, preliminary design, and massing for the project. Staff brought forward an alternate plan for housing to the State for their consideration but was ultimately told the State was unwilling to move away from the original plan due to the need to modify the legislation. The land acquisition and CEQA processes have begun. The public outreach to the key stakeholders near the project will begin in mid-september. By the end of September, a website and questionnaire will also be launched to provide project information to the public in order to gather feedback on potential tenants and the design. ITEM 12 TRANSMITTALS Received as transmitted. ITEM 13 OPPORTUNITY FOR THE PUBLIC TO ADDRESS THE BOARD REGARDING MATTERS NOT ON THE AGENDA DGS timeline for parking structure. ITEM 14 ADJOURNMENT The meeting adjourned at 10:43 a.m. Rachel Mercurio Secretary to the Board of Directors
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