SPECIA. housing. residents. August 27, :00 pm CITY HALL. Room 400 (415) Barbara T. Smith

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1 SAN FRANCISCO HOUSING AUTHORITY Phil Arnold, Chairman Jaci Fong, Committee Member Patricia Thomas, Committee Member DEVELOPMENT AND FINANCE COMMITTEE SPECIA AL MEETING AGENDA August 27, :00 pm CITY HALL 1 DR. Goodlett Place Room 400 San Francisco, California (415) Barbara T. Smith Acting Executive Director The Mission of the San Francisco Housing Authority is to deliver safe and decent housing for low income householdss and integrate economic opportunity for 1 residents.

2 S AN F RANC ISCO H OUSING A UTHORITY J OAQUIN T ORRES, P RESIDENT SAN FRANC CISCO HOUSIN NG AUTHORITY Phil Arnold, Chairmann Jaci Fong, Committee Member Patricia Thomas, Committee Member Barbara T. Smith, Acting Executive Director CITY HALL 1 DR. Goodlett Place Room 400 SAN FRANCISCO, California DEVELOPMENT AND FINANCE COMMITTEEE SPECIAL MEETING NOTICE Wednesday, August 27, :00 p.m. 1. Disability Access: Room 400 is wheelchair accessible. The closest accessible BART Station is Civic Center, three blocks from City Hall. Accessible MUNI lines serving this location are: #42 Downtown Loop, the #71 Haight/Noriega, the F Line to Market and Van Ness, and the Metro stations at Van Ness and Market and at Civic Center. For more information about MUNI accessible services, call (415) Disability Accommodations: To request assistive listening devices, real time captioning, sign language interpreters, readers, large print agendas or other accommodations, please contact the Commission Clerkk at (415) or aghoa@sfha.org at least 72 hours in advance of the hearing to help ensure availability. 3. Agenda, minutes and attachments are available at as well as the San Francisco Housing Authority administrative office located at 1815 Egbert Avenue, San Francisco, California If any materials related to an item on this agenda have been distributed to the San Francisco Housing Authority Development and Finance Committee after distribution of the agenda packet, those materials are available for public inspection during normal office hours at the San Francisco Housing Authority at 1815 Egbert Street San Francisco California In order to assist the San Francisco Housing Authority s efforts to accommodate persons with severe allergies, environmental illness, multiple chemical sensitivity or related disabilities, attendees at public meetings are reminded that other attendees may be sensitive to various chemical based products. Please help the San Francisco Housing Authority accommodate these individuals. 5. The use of electronic sound-producing devices at/during public meetingss is prohibited. Please be advised that the meeting Chairman may remove any person(s) responsible for the ringing or use of cell phones, pagers and similar sound-producing electronic devices from the meeting room. 6. Requests for public comment may be heard on items that require action. Speakers at Committee meetings are requested, but not required, to identify themselves and fill out cards placed on the table at the entrance door. The public may address the Committee for up to two minutes or four minutes for speakers who require an interpreter, or unless otherwise approved by the Committee. The Committee may limit the total testimony to 30 minutes. A speaker may not yield his orr her time to another speaker. Committee procedures, do not allow for dialogue between the Committee and the public. The Committee may not take action on a new proposal, which is not on the agenda. 2

3 AGENDA ORDER OF BUSINESS 1. Call to order 2. Approval of Minutes a. Special Meeting: July 23, Development Items a. Action Items: Committee recommendation to the Board of Commissioners (1) [RESOLUTION AUTHORIZING THE ACTING EXECUTIVE DIRECTOR TO ENTER INTO A CONSTRUCTION CONTRACT WITH INTERNATIONAL FIRE INC. FOR FIRE ALARM PANEL REPLACEMENT AT ROSA PARKS (1251 TURK), AND PING YUEN NORTH (838 PACIFIC) HOUSING DEVELOPMENTS IN THE AMOUNT OF $284,797] Presented by: Project Manager, Andrew Passell a. Public Comment(s) (2) [RESOLUTION AUTHORIZING THE ACTING EXECUTIVE DIRECTOR TO ENTER INTO AN AGREEMENT BETWEEN THE HOUSING AUTHORITY OF THE CITY AND COUNTY OF SAN FRANCISCO AND THE SAN FRANCISCO PUBLIC UTILITY COMMISSION-POWER ENTERPRISE FOR THE BOILERS AND PIPING REPLACEMENT PROJECT AT BUILDING[S] E-4 & G-6 AT THE POTRERO TERRACE HOUSING DEVELOPMENT] Presented by: Project Manager, Simon Chu a. Public Comment(s) (3) [RESOLUTION AUTHORIZING THE ACTING EXECUTIVE DIRECTOR TO SELECT AND ENTER INTO A PROJECT-BASED HOUSING ASSISTANCE PAYMENT CONTRACT FOR ALICE GRIFFITH PHASE 1, NOT TO EXCEED 23 PROJECT BASED SECTION 8 VOUCHERS] Presented by: Director of Leased Housing, Steven Rosario a. Public Comment(s) 3

4 (4) [RESOLUTION AUTHORIZING THE ACTING EXECUTIVE DIRECTOR TO SELECT AND ENTER INTO A PROJECT-BASED HOUSING ASSISTANCE PAYMENT CONTRACT FOR ALICE GRIFFITH PHASE 2, NOT TO EXCEED 22 PROJECT BASED SECTION 8 VOUCHERS] Presented by: Director of Leased Housing, Steven Rosario a. Public Comment(s) (5) [RESOLUTION AUTHORIZING THE ACTING EXECUTIVE DIRECTOR TO SELECT AND ENTER INTO A PROJECT-BASED HOUSING ASSISTANCE PAYMENT CONTRACT FOR 250 KEARNY STREET, SAN FRANCISCO, CALIFORNIA NOT TO EXCEED A TOTAL OF 130 HUD-VETERANS AFFAIRS SUPPORTIVE HOUSING (VASH) PROJECT BASED SECTION 8 VOUCHERS] Presented by: Program Manager II, Allyn Hayes a. Public Comment(s) (6) [RESOLUTION APPROVING AND AUTHORIZING THE EXECUTION OF THE FIRST AMENDMENT TO LICENSE AGREEMENT (ALICE GRIFFITH HOUSING DEVELOPMENT) BETWEEN THE HOUSING AUTHORITY OF THE CITY AND COUNTY OF SAN FRANCISCO AND C.P. DEVELOPMENT CO., LP, RELATED TO INFRASTRUCTURE WORK] 4. Finance Items: Presented by: Program Manager, Toni Autry a. Public Comment(s) a. Committee recommendation to the Board of Commissioners (1) [RESOLUTION APPROVING THE 2015 BUDGET/2016 PROJECTION] Presented by: Chief Strategic Planning and Budget Officer, Carl Gayden a. Public Comment(s) (2) [RESOLUTION AUTHORIZING THE ACTING EXECUTIVE DIRECTOR TO RENEW THE ANNUAL 2015 MAINTENANCE AGREEMENT WITH GILSON SOFTWARE SOLUTIONS FOR AN AMOUNT NOT TO EXCEED $29,798.10] Presented by: Chief Procurement Officer, Solomon Gebala 4

5 a. Public Comment(s) (3) [RESOLUTION AUTHORIZING THE ACTING EXECUTIVE DIRECTOR TO ENTER INTO AN AGREEMENT WITH QBIX TO PROVIDE INTEGRATION SUPPORT FOR GREAT PLAINS AND GILSON SOFTWARE SOLUTIONS FOR THE FINANCE DEPARTMENT FOR AN AMOUNT NOT TO EXCEED $5,527.50] Presented by: Chief Procurement Officer, Solomon Gebala a. Public Comment(s) (4) [RESOLUTION AUTHORIZING THE ACTING EXECUTIVE DIRECTOR TO AMEND THE EXISTING CONTRACT WITH WATCHTOWER SECURITY TO INSTALL, MAINTAIN AND MONITOR 7 ADDITIONAL SURVEILLANCE CAMERAS AND RELOCATE/ADJUST ANGLE OF OTHER CAMERAS AT THE ALICE GRIFFITH DEVELOPMENT. THIS CONTRACT AMENDMENT FOR THE 7 ADDITIONAL CAMERAS WILL BE UNDER A NINE (9) MONTH SCHEDULE WITHIN THE EXISTING CONTRACT WITH THE OPTION FOR FOUR (4) ADDITIONAL ONE (1) YEAR EXTENSIONS (WITH 5% DISCOUNT EACH YEAR) FOR AN AMOUNT NOT TO EXCEED $16,186.77] 5. Standing items Presented by: Chief Procurement Officer, Solomon Gebala a. Public Comment(s) a) SFHA Monthly Budget to Actual Report Presented by Velma Navarro, Deputy Executive Director/Chief Operating Officer b) Independent Public Accountant Audit Tracking Tool Update, Presented by Velma Navarro, Deputy Executive Director/Chief Operating Officer c) PHARS Update, Presented by Velma Navarro, Deputy Executive Director/Chief Operating Officer d) Procurement Update, Presented by Solomon Gebala, Chief Procurement Officer 6. Adjournment 5

6 DEVELOPMENT AND FINANCE COMMITTEE SPECIAL MEETING MINUTES HOUSING AUTHORITY OF THE CITY AND COUNTY OF SAN FRANCISCO July 23, 2014 SCHEDULED: 8:30AM 2nd Floor IT Room 1815 Egbert Avenue, San Francisco, California COMMISSIONERS PRESENT: Phil Arnold, Chairman Jaci Fong, Committee Member COMMISSIONERS EXCUSED: Patricia Thomas, Commissioner Item 1: Meeting called to order Chairman Arnold called the meeting to order at 8:36AM Item 2: Approval of Minutes a. Special Meeting: July 2, 2014 Public Comment No comment Motion: First: Commissioner Fong Second: Commissioner Arnold Vote: Ayes: Commissioner Fong and Arnold Nay: None Item 3: Development Items a. Action Items: Committee Recommendation to Board of Commissioners 1. [RESOLUTION APPROVING AND AUTHORIZING THE EXECUTION OF (I) A QUIT CLAIM DEED OF A PORTION OF WEST POINT ROAD IN THE CITY AND COUNTY OF SAN FRANCISCO FROM THE CITY AND COUNTY OF SAN FRANCISCO TO THE HOUSING AUTHORITY OF THE CITY AND COUNTY OF SAN FRANCISCO, IN CONNECTION WITH THE HUNTERS VIEW PHASE II PROJECT, AND (II) A CERTIFICATE OF ACCEPTANCE (GOVERNMENT CODE SECTION 27281).] Presented by: HOPE VI Project Manager, Toni Autry Commissioner Arnold asked if there would be subsequent action for the Commission to lease the new road to someone else. Catherine Etsel, stated that it would be leased to the affiliate of Hunters View (HV) Partners II and that would happen through the final map 6

7 process and the ground lease. She stated that the land would then get re-conveyed to the City with the determination of completeness which we are going through right now with Phase I. Commissioner Arnold asked what the status of the new Fairfax avenue was? Ms. Etsel stated that the new Fairfax Avenue was complete for Phase I and for Phase II. Fairfax Avenue had been graded and the utility work that is covered under the license agreement would start next week. Public comment None Motion: First: Commissioner Fong recommended the item to Commission as a Consent Item Second: Commissioner Arnold Vote: Ayes: Commissioner Fong and Arnold Nay: None Item 4: Finance Items: a. Presentation of the 2013 Independent Audit of the Housing Authority of the City and County of San Francisco Presented by: Gini & O Connell, LLP Benjamin Lau, Macias, Benjamin Lau, Macias Commissioner Arnold asked for more information on the four new findings. The auditor stated that the new findings were related to locating documents and files. Ms. Navarro stated that the file organization in the Finance Department was lacking and that new staff was ensuring improvement in records management. She stated that on a positive note the Authority has had communication with the regional director of Public Housing and he had indicated that the Department of Housing and Urban Development (HUD) appreciated getting the audit in on time and meeting the Stop Loss requirements. Ms. Navarro stated that HUDs local and DC offices had no further concerns on the Authority s financial state and looked forward to the agency s continued progress. Commissioner Arnold asked that Action item E be moved to the next item on the agenda. Public comment None Item 5: Action Items: Committee recommendation to Board of Commissioners e) [RESOULTION AUTHORIZING THE ACTING EXECUTIVE DIRECTOR TO EXERCISE A THIRD YEAR OPTION UNDER THE CONTRACT WITH MACIAS, GINI& O CONNELL, LLP FOR AUDIT SERVICES] Presented by: Chief Procurement Officer, Solomon Gebala Commissioner Arnold asked where the funding would come from for the contract. Ms. Navarro stated that the funding would come from the 2014 budget for year one and the 7

8 second through third year would come from the 2015 budget. He thanked the auditors for their thorough presentation. Public comment None Motion: First: Commissioner Fong recommended the item to Commission as a Consent Item Second: Commissioner Arnold Vote: Ayes: Commissioner Fong and Arnold Nay: None Item 6: Standing Items a. SFHA Monthly Budget to Actual Report Presented by Velma Navarro, Deputy Executive Director/Chief Operating Officer Presented by: Deputy Executive Director/Chief Operating Officer, Velma Navarro Commissioner Arnold asked if the columns that stated contract amount were for the current year or if it varied from firm to firm. Ms. Navarro stated that the Zanghi Torres contract was from 2014 and the remainder contracts were from prior years. She stated that some of the contracts already had extensions applied to them. Commissioner Arnold asked how the Authority spent $47,000 for Zanghi Torres in the prior years if the contract was entered into in Ms. Navarro stated that there were expenses accrued to the law firm in 2013 but not paid until the contract was approved. Commissioner Arnold asked if there was a huge increase in legal activities during the last three months. Ms. Navarro stated that cases were already active. She stated that the Director of Government Affairs and Policy, Linda-Martin-Mason provided a list of all the outstanding cause and rent cases. Commissioner Arnold asked how the remainder three firms were paid with no contracts. Ms. Navarro stated that the firms were paid in prior years and current staff was not aware of how they were paid. Commissioner Arnold stated that the contract amendment needed column was greater than the original contract award and asked if under procurement guidelines it was allowable. Chief Procurement Officer, Solomon Gebala, stated that the action being requested of the Commission is to maintain the ability for the agency to keep moving forward. He stated that it was not in the Authority s best interest to stop the process of continued business with the legal firms so it was permissible. Commissioner Arnold asked if any of the contract amendments adjusted the billing rates for any of the firms. Mr. Gebala stated that that billing rates would remain the same. Commissioner Fong asked if there was a process already in place for construction contracts and other consulting services. Ms. Navarro stated that she had asked Solomon to work with the Chief Accounting Officer to get a velocity report. She stated that once received, staff would be able to review and determine whether the Authority had similar situations. Commissioner Fong asked about the cases that the Zanghi Torres law firm had. Ms. Navarro stated that they had rent collection cases and cause cases. However, the Authority had an in house attorney handling all rent cases. Zanghi Torres continues to represent the Authority in those rent cases assigned to them prior to the 8

9 attorney beginning employment with the Authority. Commissioner Arnold asked if staff was confident that the expenses for Renee, Sloan, Holtzman, and Sakai law firm should be charged to the capital fund. Ms. Navarro stated that the Chief Accounting Officer (CAO) did a detailed breakdown of law firm invoices and $16,000 of the invoices were not related to the Rental Assistance Demonstration (RAD) program and that those would be paid out of the Central Office Cost Center (COCC) and the remainder was an allowable cost. Commissioner Arnold asked why the agenda and resolution for Cornerstone Law Group had different amounts and asked staff for clarification. Mr. Gebala stated that it was a mistake and the correct amount was on the resolution for $64,901. Commissioner Arnold asked that the action items related to legal items be moved to the next items on the agenda. Public comment No comment Item 5: Action Items: Committee recommendation to the Board of Commissioners a) [RESOLUTION AUTHORIZING THE ACTING EXECUTIVE DIRECTOR TO INCREASE THE ORIGINAL CONTRACT WITH ZANGHI, TORRES, ARSHAWSKY, LLP BY $154,744 FOR CONTINUED LEGAL NEEDS RELATED TO UNLAWFUL DETAINER MATTERS.] Presented by: Chief Procurement Officer, Solomon Gebala Public comment None Motion: First: Commissioner Fong recommended the item to the Commission as a Consent Item Second: Commissioner Arnold Vote: Ayes: Commissioner Fong and Arnold Nay: None b) [RESOLUTION AUTHORIZING THE ACTING EXECUTIVE DIRECTOR TO INCREASE THE ORIGINAL CONTRACT WITH RENEE, SLOAN, HOLTZMAN, SAKAI BY $361,575 FOR CONTINUED LEGAL NEEDS RELATED TO RENTAL ASSISTANCE DEMONSTRATION CONVERSION.] Presented by: Chief Procurement Officer, Solomon Gebala Public comment 9

10 None Motion: First: Commissioner Fong recommended the item to Commission as a Consent Item Second: Commissioner Arnold Vote: Ayes: Commissioner Fong and Arnold Nay: None c) [RESOLUTION AUTHORIZING THE ACTING EXECUTIVE DIRECTOR TO INCREASE THE ORIGINAL CONTRACT WITH THE LAW OFFICES OF GOLDFARB & LIPMAN BY $403,951 FOR CONTINUED LEGAL NEEDS RELATED TO DEVELOPMENT AND GENERAL COUNSEL.] Presented by: Chief Procurement Officer, Solomon Gebala Public comment None Motion: First: Commissioner Fong recommended the item to Commission as a Consent Item Second: Commissioner Arnold Vote: Ayes: Commissioner Fong and Arnold Nay: None d) [RESOLUTION AUTHORIZING THE ACTING EXECUTIVE DIRECTOR TO INCREASE THE ORIGINAL CONTRACT WITH THE LAW OFFICES OF CORNERSTONE LAW GROUP BY $64,901 FOR CONTINUED HUMAN RESOURCES LEGAL NEEDS.] Presented by: Chief Procurement Officer, Solomon Gebala Public comment None Motion: First: Commissioner Fong recommended the item to Commission as a Consent Item Second: Commissioner Arnold Vote: Ayes: Commissioner Fong and Arnold Nay: None f) [RESOLUTION AUTHORIZING THE ACTING EXECUTIVE DIRECTOR TO ENTER INTO A TWO (2) YEAR AGREEMENT WITH WATCHTOWER SECURITY FOR THE INSTALLATION, MAINTENANCE AND MONITORING OF SECURITY CAMERAS AT POTRERO TERRACE AND POTRERO ANNEX FOR AN AMOUNT NOT TO EXCEED $258, ] Presented by: Chief Procurement Officer, Solomon Gebala 10

11 Commissioner Fong asked what the provisions were for replacement or repairs of cameras. Mr. Gebala stated those provisions were included in the contract. Commissioner Arnold asked what the Authority was obligated to provide. Mr. Gebala stated that the only thing that the Authority was obligated to provide was the wiring for power and Watch Tower would provide everything else. He stated that the Authority would also provide security, which was not in the contract. Commissioner Arnold asked who determined where the cameras would be placed. Mr. Gebala stated that the placement of the camera was determined with Watchtower. Housing Development and Modernization Director, Alicia Sisca stated that a walkthrough was done with the police department, Watch Tower and the Authority staff. Public comment None Motion: First: Commissioner Fong to move Action item F to the full Commission without recommendation as an Action Item Second: Commissioner Arnold Vote: Ayes: Commissioner Fong and Arnold Nay: None b. SFHA 2015 Budget Update, Presented by Velma Navarro, Deputy Executive Director/Chief Operating Officer Commissioner Arnold asked when the budget would be reviewed. Ms. Navarro stated that it would be brought before the Committee at the next meeting. Commissioner Arnold stated that the regular Development and Finance Committee Meeting on August 20, 2014 would be cancelled and moved to a special meeting on August 27, c. Independent Public Accountant Audit Tracking Tool Update, Presented by Velma Navarro, Deputy Executive Director/Chief Operating Officer d. PHARS Update, Presented by Velma Navarro, Deputy Executive Director/Chief Operating Officer Commissioner Arnold asked what the Authority s current fee structure was compared to what it would become. Ms. Navarro stated that currently the Authority was paying $7000 in monthly fees and the bank would be discussing the new rate with them at their next meeting. She stated that the only Public Housing Agency Recovery and Sustainability Agreement (PHARS) deliverable due in July was inter-program internal controls. e. Procurement Update Presented by: Chief Procurement Officer, Solomon Gebala Commissioner Arnold asked what the status was with the software Request for Qualification (RFQ). Mr. Gebala stated that staff was currently developing the software 11

12 RFQ and it would be reviewed soon in order to have the Request for Proposal (RFP) out by the end of the month. Commissioner Fong asked about the banking system and purchasing cards. Ms. Navarro stated that that the Authority was looking into purchasing cards particularly for the utility allowances. She stated that it was discussed that instead of issuing checks for the residents they would be given cards which would enable them to establish banking relationships. Public comment No comment Item 7: General Public Comment No comment Item 8: Adjournment Meeting adjourned at 11:17 A.M. 12

13 STAFF REPORT HOUSING AUTHORITY OF THE CITY AND COUNTY OF SAN FRANCISCO Agenda Category: Agenda Title: Presented By: Committee Recommendation to the Board of Commissioners- Housing Development & Modernization Department RESOLUTION AUTHORIZING THE ACTING EXECUTIVE DIRECTOR TO ENTER INTO A CONSTRUCTION CONTRACT WITH INTERNATIONAL FIRE INC. FOR FIRE ALARM PANEL REPLACEMENT AT ROSA PARKS (1251 TURK), AND PING YUEN NORTH (838 PACIFIC) HOUSING DEVELOPMENTS IN THE AMOUNT OF $284,797 Andrew Passell, Project Manager, Housing Development & Modernization Department SUMMARY: (Supporting Document is attached as Attachment I) The attached resolution authorizes the Acting Executive Director to enter into a construction contract between the Housing Authority of the City and County of San Francisco (the "Authority") and International Fire Inc. in the amount of $284,797. This construction contract will replace outdated fire alarm panels at Rosa Parks (1251 Turk), and Ping Yuen North (838 Pacific) Housing Developments. This contract will provide the Authority with new Fire Alarm Control Panels ("FACPs") that will be required to complete the planned elevator modernization at these sites. The Housing Development & Modernization Department (HD&Mod) developed the scope of work for fire alarm panel replacement. Work under this contract will include but not be limited to the following tasks: a. Survey and mobilize on site; b. Provide new fire alarm panels; c. Provide new strobe lights, sirens and pull stations; d. Remove existing panel when new panels are tested and approved; and e. Provide a two-year warranty. [Continued on Page 2] Attachments: I. Bid Solicitation Process II. Resolution A copy of any attached documents is available at the clerk s desk. DEPARTMENT S REQUESTED ACTION: Staff recommends adoption of this Resolution ACTING EXECUTIVE DIRECTOR S RECOMMENDATION: I concur with staff recommendation Development Item No.: 1 Date: August 27,

14 International Fire Inc. August 27, 2014 Page 2 of 2 The fire panel replacement project is a partial upgrade of the fire alarm and monitoring system to improve fire department response time by being connected by telephone wire and minimizing the fire alarm downtime. The fire alarm panel replacement will benefit the Authority by safeguarding life and property and removing the fire watch requirements. The replacement of the FACPs and upgrade of the fire alarm system is necessary to comply with code requirements required by the planned elevator modernization at these sites. The other sites planned for elevator modernization already have upgraded fire alarm systems. Without an upgraded fire alarm system, the elevator modernization contractor would need to subcontract and manage additional work outside their specialty, likely resulting in higher costs, more problems and delays in finishing the elevator modernization. This project provides continued employment of public housing residents meeting the Authority s requirements under resident hiring. By hiring residents, International Fire Inc. will maintain a pool of qualified residents for future work on similar construction projects. Resident Hiring International Fire Inc. has one Authority resident on its staff, which meets and exceeds the 25% resident hiring contract hour requirements. International Fire Inc. has experience in resident hiring and has satisfied this requirement on past construction contracts. MBE/WBE Participation International Fire Inc. is a certified woman owned business. Budget Considerations Funding is available through the 2014 CFP. Budget and scope of work and costs were reviewed and approved. Department s Requested Action: Recommendation to the Authority Board of Commissioners to approve the attached resolution: Authorize the Acting Executive Director to enter into a construction contract with International Fire Inc. for Fire Alarm Panel Replacement at Rosa Parks (1251 Turk), and Ping Yuen North (838 Pacific)Housing Developments. 14

15 ATTACHMENT I Bid Solicitation Process 15

16 BID SOLICITATION PROCESS HD&Mod developed the Invitation for Bid documents, Plans, and Specifications based on master procurement documents furnished by the Procurement Department and construction documents (drawings and technical specifications) that were provided by the Authority s consultants. The documents were reviewed and approved by Procurement prior to the start of the bid process. The Authority issued Solicitation No IFB-0017 on July 7, 2014, following review and approval of the solicitation by the Legal/Procurement Department. The procurement process for the action covered by this resolution meets the procurement standards of 24 CFR Procurement, HUD Handbook REV 2, Procurement Handbook for Public Housing Agencies and Indian Housing Authorities, the San Francisco Housing Authority Procurement Policy Manual, and the State of California, and local laws. The Invitation for Bid advertisement refers potential bidders to and and where the Plans and Specifications are available for free viewing and downloading through the San Francisco OCA website. The Authority also advertised for bidders and outreached to potential bidders as follows: Past Bidders List, Contractors Blue Book & Yellow Pages: The Authority ed, faxed, or mailed its Invitation for Bid advertisement to Seven (7) individual contractors from the Authority s Past Bidders List, the Contractors Blue Book and Telephone Directory Yellow Pages. Labor Unions: The Authority faxed and ed its Invitation for Bid Documents, Plans & Specifications to the San Francisco Buildings Trade Council. Organizations: The Authority ed, faxed, or mailed its Invitation for Bid advertisement to: San Francisco Hispanic Chamber MECA Builders Exchange The Blue Book of Building and Construction BV2HP Builders exchange African American Contractors Association Builders Exchanges: The Authority notified the following Builders Exchanges, where the documents are available to Contractors to view at no charge: San Francisco Builders Exchange, Peninsula Builders Exchange, Builders Exchange of Alameda County, Santa Clara Builders Exchange, Contra Costa Builders Exchange, Marin Builders Exchange, and The on-site bid walk was conducted by HD&Mod on July 15, 2014 and in attendance were Five (5) contractors along with the Authority s consultants and HD&Mod project manager. 16

17 On the closing date of the solicitation on July 31, 2014, the Authority received bids from Three (3) construction contractors. The bid documents were publicly opened and read aloud. The submittal documents were reviewed by HD&Mod and forwarded to Procurement for review and approval prior to the preparation of this resolution. Per HUD-5369 Instructions to Bidders, the contract award is based on the lowest, responsive, and responsible bidder. Based on the above, the lowest responsive and responsible bidder is International Fire Inc. with a bid that is less than one (1) percent under the independent cost estimate. The bid was analyzed and considered to be fair and reasonable. The Contractors bids are as follows. RESPONSIVE BID PROPOSALS Bidder Bid Proposal 25% Resident Hiring Contractor MBE/WBE ubcontractor /Suppliers MBE/WBE Subcontractor % of Total Job Total MBE/WBE BBJ Electric Inc. $451,227 Yes No None 0% N/A CF Contracting $498,570 Yes No Three Not provided N/A International Fire Inc. $284,797 Yes Yes None 0% 100% According to reference checks on past projects performed by International Fire Inc., the firm is a responsible fire alarm electric contractor with a good record and has similar fire alarm construction experience with this and other Housing Authorities. International Fire Inc. has performed well on similar projects and has a good history of minimizing contractor initiated change orders. A debarment check was made with California Department of Industrial Relationship and California State License Board and International Fire Inc. is not debarred from Federal Procurement and Non-Procurement work. International Fire Inc. will provide a one year UL designated monitoring contract and a two-year guarantee for materials, parts and workmanship in compliance with Authority standards. 17

18 ATTACHMENT II Resolution 18

19 RESOLUTION NO.: ADOPTED: RESOLUTION AUTHORIZING THE ACTING EXECUTIVE DIRECTOR TO ENTER INTO A CONSTRUCTION CONTRACT WITH INTERNATIONAL FIRE INC. FOR FIRE ALARM PANEL REPLACEMENT AT ROSA PARKS (1251 TURK), AND PING YUEN NORTH (838 PACIFIC) HOUSING DEVELOPMENTS IN THE AMOUNT OF $284,797 WHEREAS, the Housing Authority of the City and County of San Francisco ("Authority") publicly advertised Solicitation No IFB-0017 for Fire Panel Replacement at Rosa Parks (1251 Turk) and Ping Yuen North (838 Pacific) Housing Developments; and WHEREAS, International Fire Inc. submitted the lowest responsive and responsible bid of $284,797 for Fire Panel Replacement at Rosa Parks (1251 Turk) and Ping Yuen North (838 Pacific) Housing Developments; and WHEREAS, these services are necessary to protect the health and welfare of residents and to preserve the Authority s real property assets; and WHEREAS, funding is available through the 2014 CFP budget; and WHEREAS, the procurement process for those actions covered by this resolution meet the procurement standards of 24 CFR Procurement, HUD Handbook REV 2, Procurement Handbook for Public Housing Agencies and Indian Housing Authorities, the Authority Procurement Policy Manual and State of California and local laws; and WHEREAS, all additional relevant documents submitted by the low bidder have been reviewed and found to be in order; and WHEREAS, International Fire Inc. will meet the Resident Hiring requirements; NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF COMMISSIONERS OF THE HOUSING AUTHORITY OF THE CITY AND COUNTY OF SAN FRANCISCO ("BOARD") THAT: 1. The above recitals are true and correct, and together with the staff report, form the basis for the Board's actions as set forth in this Resolution; 2. The Acting Executive Director is authorized to enter into a construction contract with International Fire Inc. for Fire Panel Replacement at Rosa Parks (1251 Turk) and Ping Yuen North (838 Pacific) Housing Developments in the amount of $284, This resolution shall take effect immediately. 19

20 APPROVED AS TO FORM AND LEGALITY: Dianne Jackson McLean, Goldfarb & Lipman LLP, Special Legal Counsel Date: REVIEWED BY: Barbara T. Smith, Acting Executive Director Date: 20

21 STAFF REPORT HOUSING AUTHORITY OF THE CITY AND COUNTY OF SAN FRANCISCO Agenda Category: Agenda Title: Presented By: Action Item Housing Development and Modernization Department RESOLUTION AUTHORIZING THE ACTING EXECUTIVE DIRECTOR TO ENTER INTO AN AGREEMENT BETWEEN THE HOUSING AUTHORITY OF THE CITY AND COUNTY OF SAN FRANCISCO AND THE SAN FRANCISCO PUBLIC UTILITY COMMISSION-POWER ENTERPRISE FOR THE BOILERS AND PIPING REPLACEMENT PROJECT AT BUILDING[S] E-4 & G-6 AT THE POTRERO TERRACE HOUSING DEVELOPMENT Simon Chu, Project Manager, Housing Development, Modernization & Maintenance Department SUMMARY: This resolution will authorize the Acting Executive Director to enter into a Letter of Agreement between the Housing Authority of the City and County of San Francisco (the "Authority") and the San Francisco Public Utility Commission - Power Enterprise (SFPUC-Power) to replace the space heating system boilers and selective piping at building(s) E-4 & G-6 at the Potrero Terrace Housing Development. SFPUC-Power will provide related construction funding and management while the Authority s consultant, ACIES Engineering, will be the engineer-on-record for the project. Currently, the existing space heating system for building E-4 & G-6 is out of service due to pipe leak(s) from unknown locations of existing underground pipes. [Continued on Page 2] Attachment I: Letter of Agreement Attachment II: Resolution A copy of any attached documents is available at the clerk s desk. DEPARTMENT S REQUESTED ACTION: Staff recommends adoption of this Resolution ACTING EXECUTIVE DIRECTOR S RECOMMENDATION: I concur with staff recommendation Development Item No.: 2 Date: August 27,

22 Potreroo Terrace Boiler/Piping August 27, 2014 Page 2 of 3 The Potrero Terrace Housing Development consists of 38 residential, three story, concrete buildings and one office building. These buildings space heating services are provided by a central heating system through a network of underground piping. The central heating system serving building(s) E-4 and G-6 has leaks from their underground piping. The leaks originated from building E4. The system heats the building s floor slab at ground level and the heat surfaces in the open area between the buildings. Some investigative trenching was performed but failed to locate the origin of the leak. The ground floor units at buildingg E4 are currently vacant. The units are boarded up as reflected in the photo below. The units are not available for lease until the leak is fixed. To fix these issuess new pipes and new boilers will be installed; while the old system will be cut off from servicee and abandoned on site. The improvements willl reduce leaking, water consumptionn and water bills. Building E4 at 900 Connecticut Street at Potrero Terrace Housing Development. 22

23 Potrero Terrace Boiler/Piping August 27, 2014 Page 2 of 3 The Authority reached out to the San Francisco Public Utility Commission s Power Enterprise division (SFPUC-Power) in May of 2014 for capital improvement assistance though their program for low-income housing energy improvement. A meeting was subsequently arranged between the agencies to identify the project s scope of work. The Authority has requested and SFPUC-Power has agreed that the boiler and piping replacement project at building E4 & G6 at Potrero Terrace Housing Developments is the best option to meet the Authority s immediate need. Further, the project also meets SFPUC-Power s expenditure requirement for low-income housing energy improvement(s). SFPUC-Power will be responsible for the construction cost of the project and the Authority will provide access to the site and coordinate construction activities as needed for the duration of the project. The agreement has been reviewed by the Authority s legal counsel and staff recommends approval of the agreement. Resident Hiring: SFPUC-PE has added Authority s resident hiring requirement into their bid document. Residents of the Authority will have opportunity to participate in this project. Budget Consideration: The Boiler and Piping Replacement project is estimated to cost $850,000 and will be funded from SFPUC-PE s budget to improve energy efficiency for low income housing in the City. 23

24 ATTACHMENT I Letter of Agreement between the San Francisco Public Utilities Commission Power Enterprise and the Housing Authority of the City and County of San Francisco 24

25 25

26 26

27 Attachment A: Responsibility Matrix Project: San Francisco Housing Authority Building Energy Improvement Project Potrero Terrace Buildings E-4 and G-6 Task Design SFPUC Power Department Site (SFHA) SFHA Consultant ACIES Engineering Develop Design/Specifications R R/A P R Develop Scope of Work R R/A P R Develop Design Drawings R R/A P R Construction PUC CMB Contractor Conducts Job Walk P S P Selects Contractor P R R Issues Contract P R R Secures Construction Permit S/R S S/R P Prepares Construction Schedule R R R P Performs Construction R R R R P Document Management P R P/S Submittals and RFIs S/R R S/R S/R P Approves Contractor Invoices P S/R Inspection of Work S R R P Construction Progress Reports/Log R R R P Initiate Change Orders P/R R R R P/R Prepare Meeting Agendas/Minutes P R S S S Attend Project Meetings P P S P P Develop Punch Lists S S/R S/R P R Perform Punch List Items R R R R P Test & Final Inspection R R R R P O&M Training S P Acceptance P R R S/R As-Built Drawings S/R R R R P P = Primary; S = Support; R = Review; A = Approval SFPUC = San Francisco Public Utilities Commission; SFPUC Power = SFPUC Power Enterprise; PUC CMB = SPFUC Construction Management Bureau; Department Site = SFHA: San Francisco Housing Authority; SFHA Consultant = ACIES Engineering; Contractor = To Be Determined 27

28 ATTACHMENT II Resolution 28

29 RESOLUTION NO: ADOPTED: RESOLUTION AUTHORIZING THE ACTING EXECUTIVE DIRECTOR TO ENTER INTO AN AGREEMENT BETWEEN THE HOUSING AUTHORITY OF THE CITY AND COUNTY OF SAN FRANCISCO AND THE SAN FRANCISCO PUBLIC UTILITY COMMISSION- POWER ENTERPRISE FOR THE BOILERS AND PIPING REPLACEMENT PROJECT AT BUILDING[S] E-4 & G-6 AT THE POTRERO TERRACE HOUSING DEVELOPMENT WHEREAS, the central heating system at the Potrero Terrace Housing Development that serves building(s) E-4 and building G-6 has leaks from the underground piping; and WHEREAS, San Francisco Public Utility Commission-Power Enterprise will fund and construct the project's $850, estimated cost for the Boiler and Piping Replacement Project at Building E-4 & G-6 at Potrero Terrace Housing Development; and WHEREAS, this project is necessary to reinstate the space heating system at building E-4 & G-6 at Potrero Terrace Housing Development; and WHEREAS, the agreement between the San Francisco Public Utilities Commission Power Enterprise (SFPUC-Power) and the Housing Authority of the City and County of San Francisco (the "Authority") formalizes the responsibilities, costs, and scope of work associated with the implementation of replacing the heating systems servicing the two buildings located in Potrero Terrace: Building E-4: Connecticut Street & Building G-6: Connecticut Street; and WHEREAS, SFPUC-Power will select a contractor who will be required to make a good faith effort in complying with the Authority's Resident Hiring Goals in compliance with Section 3 of the Housing and Urban Development Act of 1968, 24 CFR and Resolution No WHEREAS, the Authority will be responsible for facilitating correspondence between its consultant, ACIES Engineering, providing 120 V electrical power, potable water, site access, and a designated on-site project construction coordinator; 29

30 NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF COMMISSIONERS OF THE HOUSING AUTHORITY OF THE CITY AND COUNTY OF SAN FRANCISCO THAT: 1. The above recitals are true and correct, and together with the staff report, form the basis for the Board of Commissioners of the Housing Authority of the City and County of San Francisco (Board) actions as set forth in this Resolution; 2. The Agreement between Housing Authority of the City and County of San Francisco and the San Francisco Public Utility Commission-Power for the Boiler and Piping Replacement Project at building E-4 & G-6 at Potrero Terrace Housing Development (the "Agreement") is hereby approved, and the Acting Executive Director is authorized to enter into the Agreement on behalf of the Authority.. 3. This resolution shall take effect immediately. APPROVED AS TO FORM AND LEGALITY: Dianne Jackson McLean, Goldfarb & Lipman LLP, Special Legal Counsel Date: REVIEWED BY: Barbara T. Smith, Acting Executive Director Date: 30

31 STAFF REPORT HOUSING AUTHORITY OF THE CITY AND COUNTY OF SAN FRANCISCO Agenda Category: Agenda Title: Action Item Leased Housing Department RESOLUTION AUTHORIZING THE ACTING EXECUTIVE DIRECTOR TO SELECT AND ENTER INTO A PROJECT-BASED HOUSING ASSISTANCE PAYMENT CONTRACT FOR ALICE GRIFFITH PHASE 1, NOT TO EXCEED 23 PROJECT BASED SECTION 8 VOUCHERS Presented By: Allyn Hayes, Program Manager II SUMMARY: Housing Authority of the City and County of San Francisco (the Authority ) administers the U.S. Department of Housing and Urban Development s (HUD) Section 8 Project Based Voucher (PBV) program in the City and County of San Francisco. In August 2014, the Authority received a non-competitive request to project-based twenty-three (23) units for the Alice Griffith Phase 1 Replacement Housing Project, at2700 Arelious Walker Drive, San Francisco; in accordance with the Authority s Administrative Plan (Section 17.II.A.). Alice Griffith Phase 1, L.P. is the applicant, which is an affiliate of McCormack Baron Salazar, Inc. McCormack Baron Salazar, Inc., ( MBS ) has significant experience in managing multifamily housing, including Project Based Voucher units. [Continued on Page 2] Attachments: I. Resolution A copy of any attached documents is available at the clerk s desk. DEPARTMENT S REQUESTED ACTION: Staff recommends adoption of this Resolution ACTING EXECUTIVE DIRECTOR S RECOMMENDATION: I concur with staff recommendation Development Item No.: 3 Date: August 27,

32 PB Alice Griffith Phase I August 27, 2014 Page 2 The requestor, Alice Griffith Phase 1, L.P., qualifies for non-competitive selection because MBS and the Authority were previously selected by HUD with the Choice Neighborhoods Implementation Grant. The proposal for Alice Griffith Phase 1 will enhance and preserve the diversity of Bayview/ Hunters Point neighborhood by providing a total 93 of 504 quality replacement public housing and affordable rental housing units. Three (3) Authority staff members reviewed the non-competitive application submission and awarded points pursuant to the application requirements and the Authority s Administrative Plan. Exhibit A contains the summary of points awarded by Authority staff members. Copies of the complete application submission can be requested from the department. The Authority proposes to award the voucher funding and enter into a 15-year contract with the condition that the final contract rents continue to match the Authority s Fair Market/Payment Standard, as approved by the Authority s Board of Commissioners (Board). Additionally, the award will be made conditionally upon Board approval and any other standard requirements as described in the Administrative Plan. 32

33 ATTACHMENT I Resolution 33

34 RESOLUTION NO: ADOPTED: RESOLUTION AUTHORIZING THE ACTING EXECUTIVE DIRECTOR TO SELECT AND ENTER INTO A PROJECT-BASED HOUSING ASSISTANCE PAYMENT CONTRACT FOR ALICE GRIFFITH PHASE 1, NOT TO EXCEED 23 PROJECT BASED SECTION 8 VOUCHERS WHEREAS, the Housing Authority of the City and County of San Francisco (Authority) administers the U.S. Department of Housing and Urban Development (HUD) Section 8 Project Based Voucher (PBV) program in the City and County of San Francisco; and WHEREAS, the Authority received a non-competitive request to project-based twenty-three (23) tenantbased vouchers at Alice Griffith Phase I Replacement Housing Project, San Francisco in accordance with the Authority s Administrative Plan (Section 17.II.A.); and WHEREAS, Alice Griffith Phase 1, L.P. qualifies for non-competitive selection because McCormack Baron Salazar, Inc., an affiliate of Alice Griffith 1, L.P. and the Authority were previously selected in a competitive process by HUD with the Choice Neighborhoods Implementation Grant; and WHEREAS, Alice Griffith Phase 1, L.P., intends to enter into a ground lease with the Authority on the site and construct five (5) one-bedroom, twelve (12) two-bedrooms, two (2) three-bedrooms, and four (4) four-bedrooms units; and WHEREAS, the families will have access to Bus Stop 29, Gilman Park, Bayview Branch Library, Bret Harte Elementary School, Arthur H. Coleman Medical Center, and Southeast Medical Center; and WHEREAS, the PBV commitment is required in order to receive low income housing tax credit investor and lender commitments and achieve financial closing of the project; and WHEREAS, the Authority desires to (i) enter into an Agreement to enter into a Housing Assistance Payment (AHAP) contract, and (ii) after the Project has been constructed, subject to any additional requirements as enumerated in the Administrative Plan pursuant to 24 CFR , enter into a Housing Assistance Payment (HAP) contract. NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF COMMISSIONERS OF THE HOUSING AUTHORITY OF THE CITY AND COUNTY OF SAN FRANCISCO ( BOARD ) THAT: 1. The above recitals are true and correct, and together with the staff report, form the basis for the Board s) actions as set forth in this Resolution; 2. The Acting Executive Director is hereby authorized to select Alice Griffith Phase I Project with Alice Griffith Phase 1, L.P., an affiliate of McCormack Baron Salazar, for project-based voucher funding not to exceed twenty-three (23) vouchers. 34

35 3. The Authority s selection of this PBV proposal and subsequently placing the Alice Griffith Phase I Project under a PBV AHAP contract, awarding a maximum of twenty-three (23) project based vouchers is hereby approved. 4. Upon final construction of the units, the Acting Executive Director is hereby authorized to enter into a 15-year HAP contract with Alice Griffith Phase 1, L.P. for twenty-three (23) project based vouchers, only after the staff has determined that the Project has been constructed in accordance with the requirements set forth in the AHAP and any other standard requirements as described in the Administrative Plan and 24 CFR This resolution shall take effect immediately. APPROVED AS TO FORM AND LEGALITY: Dianne Jackson McLean, Goldfarb & Lipman LLP, Special Legal Counsel Date: REVIEWED BY: Barbara T. Smith, Acting Executive Director Date: 35

36 STAFF REPORT HOUSING AUTHORITY OF THE CITY AND COUNTY OF SAN FRANCISCO Agenda Category: Agenda Title: Presented By: Action Item Leased Housing Department RESOLUTION AUTHORIZING THE ACTING EXECUTIVE DIRECTOR TO SELECT AND ENTER INTO A PROJECT-BASED HOUSING ASSISTANCE PAYMENT CONTRACT FOR ALICE GRIFFITH PHASE 2, NOT TO EXCEED 22 PROJECT BASED SECTION 8 VOUCHERS Allyn Hayes, Program Manager II SUMMARY: The Housing Authority of the City and County of San Francisco (Authority) administers the U.S. Department of Housing and Urban Development s (HUD) Section 8 Project Based Voucher (PBV) program in the City and County of San Francisco. In August 2014, the Authority received a non-competitive request to project-based twenty-two (22) units for the Alice Griffith Phase II Replacement Housing Project 2700 Arelious Walker Drive, San Francisco; in accordance with the Authority s Administrative Plan (Section 17.II.A.). Alice Griffith Phase II, L.P. is the applicant, which is an affiliate of McCormack Baron Salazar, Inc. McCormack Baron Salazar, Inc.; ( MBS has significant experience in managing multifamily housing, including Project Based Voucher units. [Continued on Page 2] Attachments: I. Summary of Points II. Resolution A copy of any attached documents is available at the clerk s desk. DEPARTMENT S REQUESTED ACTION: Staff recommends adoption of this Resolution ACTING EXECUTIVE DIRECTOR S RECOMMENDATION: I concur with staff recommendation Development Item No.: 4 Date: August 27,

37 Alice Griffith Phase II-PB August 27, 2014 Page 2 of 2 The requestor, Alice Griffith Phase II, L.P., qualifies for non-competitive selection because it and the Authority were previously selected by HUD with the Choice Neighborhoods Implementation Grant. The proposal for Alice Griffith Phase II will enhance and preserve the diversity of Bayview / Hunters Point neighborhood by providing a total 91of 504 quality replacement public housing and affordable rental housing units. Three (3) Authority staff members reviewed the non-competitive application submission and awarded points pursuant to the application requirements and the Authority s Administrative Plan. Attachment I contains the summary of points awarded by Authority staff members. Copies of the complete application submission can be requested from the department. The Authority proposes to award the voucher funding and enter into a 15-year contract with the condition that the final contract rents continue to match the Authority s Fair Market/Payment Standard, as approved by the Authority Commission. Additionally, the award will be made conditionally upon Board approval and any other standard requirements as described in the Administrative Plan. 37

38 ATTACHMENT I Summary of Points Awarded 38

39 San Francisco Housing Authority PBV Proposal Evaluation Totals Site: Alice Griffith Phase 2 70 points Twima Early, Director of Public Housing Operations 70 points Linda Martin-Mason, Director of Government Affairs and Policy 75 points Nicole T. McCray-Dickerson, Director of Client Placement 255 points TOTAL POINTS Awarded (300 points possible) 39

40 PHA Request for Proposals for Rehabilitated and Newly Constructed Units: TERM OF CONTRACT REQUESTED (MIN. 5 PTS. REQUIRED) MAX. PTS. AVAIL. Fifteen years 20 Eight to eleven years 10 Five to seven years 5 DEVELOPMENT EXPERIENCE (MIN. 5 PTS. REQUIRED) MAX. PTS. AVAIL. If applicant has developed 100 or more low-income housing units as primary or co-sponsor in the past five years. 10 If applicant has developed between 50 and 100 low-income housing units as primary or cosponsor in the past five years. 5 OWNER EXPERIENCE (MIN. 1 PT. REQUIRED) MAX. PTS. AVAIL. If applicant has 20 or more years of experience in owning affordable rental housing. 5 If applicant has 10 to 19 years of experience in owning affordable rental housing. 2 If applicant has 20 or more years of experience in owning other types of rental housing. 2 If applicant has 10 to 19 years of experience in owning other types of rental housing. 1 BUILDING EXPERIENCE (MIN. 1 PT. REQUIRED) MAX. PTS. AVAIL. If applicant has 20 or more years of experience in building and maintaining affordable rental housing. 5 If applicant has 10 to 19 years of experience in building and maintaining affordable rental housing. 2 If applicant has 20 or more years of experience in building and maintaining other types of rental housing. 2 If applicant has 10 to 19 years of experience in building and maintaining other types of rental housing. 1 DECONCENTRATION OF POVERTY (MIN. 5 PTS. REQUIRED) MAX. PTS. AVAIL. Project in a census tract that has a poverty concentration of 20 percent or less 20 PHA will grant exceptions to the 20 percent standard where the PHA determines that the PBV assistance will complement other local redevelopment activities designed to deconcentrate poverty and expand housing and economic opportunities in census tracts with poverty concentrations greater than 20 percent, such as sites in (select one): o o o o o o A census tract in which the proposed PBV development will be located in a HUD-designated Enterprise Zone, Economic Community, or Renewal Community; A census tract where the concentration of assisted units will be or has decreased as a result of public housing demolition and HOPE VI redevelopment; A census tract in which the proposed PBV development will be located is undergoing significant revitalization as a result of state, local, or federal dollars invested in the area; A census tract where new market rate units are being developed where such market rate units will positively impact the poverty rate in the area; A census tract where there has been an overall decline in the poverty rate within the past five years; or A census tract where there are meaningful opportunities for educational and economic advancement. SERVICES (MIN. 5 PTS. REQUIRED) MAX. PTS. AVAIL. Extent to which services for special populations are provided on site or in the immediate area for occupants of the property; services may include the following: Child care, Transportation, Education, Job Training and/or Employment Counseling, Substance/Alcohol Abuse Treatment or Counseling, Household Skill Trainings (housekeeping & homemaking), Homeownership Counseling, Family Budgeting, and/or Parenting Skills Three or more services 20 Two services 10 One service 5 UNITS ASSISTED (MIN. 5 PTS. REQUIRED) MAX. PTS. AVAIL. Projects with less than 25 percent of the units assisted will be rated higher than projects with 25 percent of the units assisted. In the case of projects for occupancy by the elderly, persons with disabilities or families needing other services, the PHA will rate partially assisted projects on the percent of units assisted. Projects with the lowest percent of assisted units will receive the highest score. Less than 5 percent of the units assisted 20 6 percent to 14 percent of the units assisted percent to 24 percent of units assisted percent of units assisted

41 MANDATORY Selection Criteria for PBV HUD VASH Voucher Proposals: TERM OF CONTRACT REQUESTED (MIN. 5 PTS. REQUIRED) MAX. PTS. AVAIL. Fifteen years 20 LOCAL ACTIVITIES (MIN. 10 PTS. REQUIRED) MAX. PTS. AVAIL. Extent to which the proposal complements other local activities such as the redevelopment of a public housing site under the HOPE VI program, HOPE SF, Choice Neighborhoods Initiative, the HOME program, CDBG activities, other development activities in a HUD-designated Enterprise Zone, Economic Community, or Renewal Community. If the proposed site meets the above criteria 20 If the proposed site meets other development activities (please specify) 10 DECONCENTRATION OF POVERTY (MIN. 5 PTS. REQUIRED) MAX. PTS. AVAIL. Project in a census tract that has a poverty concentration of 20 percent or less 20 AN EXPLANATION AS TO WHY THE PROJECT IS PROPOSING TO PROJECT-BASE HUD-VASH VOUCHERS RATHER THAN PROVIDING TENANT-BASED ASSISTANCE. 10 MAX. PTS. AVAIL. (MIN. 10 PTS. REQUIRED) A DESCRIPTION OF CHALLENGES VOUCHER HOLDERS (AND HUD-VASH VOUCHER HOLDERS, IN PARTICULAR) FACE IN THE LOCAL RENTAL MARKET. INCLUDE THE COMMUNITY NEEDS, CITY S HOUSING GOALS, AND SUCCESS RATE OF HUD-VASH 10 MAX. PTS. AVAIL. VOUCHERS IN THE COMMUNITY. (MIN. 10 PTS. REQUIRED) FOR NEWLY CONSTRUCTED/SUBSTANTIALLY REHABILITATED UNITS, THE LENGTH OF TIME HUD-VASH VOUCHERS WOULD BE NOT UTILIZED WHILE 10 MAX. PTS. AVAIL. WAITING FOR THE PBV UNITS TO BE COMPLETED. (MIN. 5 PTS. REQUIRED) A DESCRIPTION OF THE PROPOSED PROJECT INCLUDING THE FOLLOWING DATA: 50 MAX. PTS. AVAIL. Total number of proposed PBV units and buildings in the project 60 Poverty rate of the census tract in which the site is located 19.4% PHA Plan and Administrative Plan policies on deconcentrating poverty and expanding housing and economic opportunities, if applicable to the census tract s 10 MAX. PTS. poverty rate (see 24 CFR Section (b)(1)) YES 10 Any HUD-VASH related supportive services on or near the premises of the proposed site 10 MAX. PTS. YES 10 Accessibility of the proposed site to the VAMC or CBOC, transportation, and social and medical services. 20 MAX. PTS. If property is located within three miles of a VA facility 10 If the property is located with one mile of shopping or neighborhood services 5 If the property is located within three miles of places of significant employment 5 A LETTER OF SUPPORT SIGNED BY VETERAN S AFFAIRS MEDICAL CENTER (VAMC) OR VETERANS INTEGRATED SERVICE (VISN) DIRECTOR AND THE VA 20 MAX.PTS. NETWORK HOMELESS COORDINATOR. (MIN. 20 PTS. REQUIRED) 41

42 ATTACHMENT II Resolution 42

43 RESOLUTION NO: ADOPTED: RESOLUTION AUTHORIZING THE ACTING EXECUTIVE DIRECTOR TO SELECT AND ENTER INTO A PROJECT-BASED HOUSING ASSISTANCE PAYMENT CONTRACT FOR ALICE GRIFFITH PHASE 2, NOT TO EXCEED 22 PROJECT BASED SECTION 8 VOUCHERS WHEREAS, the Housing Authority of the City and County of San Francisco (Authority) administers the U.S. Department of Housing and Urban Development (HUD) Section 8 Project Based Voucher (PBV) program in the City and County of San Francisco; and WHEREAS, the Authority received a non-competitive request to project-based twenty-two (22) tenantbased vouchers at Alice Griffith Phase II Replacement Housing Project, San Francisco, California., in accordance with the Authority s Administrative Plan (Section 17.II.A.); and WHEREAS, Alice Griffith Phase II qualifies for non-competitive selection because it and the Authority were previously selected in a competitive process by HUD with the Choice Neighborhoods Implementation Grant; and WHEREAS, Alice Griffith Phase II intends to enter into a ground lease on the site with the Authority and construct five (5) one-bedroom, eleven (11) two-bedrooms, two (2) three-bedrooms, and four (4) four-bedrooms unit(s); and WHEREAS, the families will have access to Bus Stop 29, Gilman Park, Bayview Branch Library, Bret Harte Elementary School, Arthur H. Coleman Medical Center, and Southeast Medical Center; and WHEREAS, the PBV commitment is required in order to receive low income housing credit l investor and lender commitments and achieve financial closing of the project; and WHEREAS, the Authority desires to (i) enter into an Agreement to enter into a Housing Assistance Payment (AHAP) contract, and (ii) after the Project has been constructed, subject to any additional requirements as enumerated in the Administrative Plan pursuant to 24 CFR , enter into a Housing Assistance Payment (HAP) contract. NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF COMMISSIONERS OF THE HOUSING AUTHORITY OF THE CITY AND COUNTY OF SAN FRANCISCO ( BOARAD ) THAT: 1. The above recitals are true and correct, and together with the staff report, form the basis for the Board s actions as set forth in this Resolution; 2. The Acting Executive Director is hereby authorized to select Alice Griffith Phase II Project with Alice Griffith Phase II, L.P., an affiliate of McCormack Baron Salazar, for project-based voucher funding not to exceed twenty-two (22) vouchers. 43

44 3. The Authority s selection of this PBV proposal and subsequently placing the Alice Griffith Phase II Project under a PBV AHAP contract, awarding a maximum of twenty-two (22) project based vouchers is hereby approved; 4. Upon final construction of the units, the Acting Executive Director is hereby authorized to enter into a 15-year HAP contract with Alice Griffith Phase 2, L.P. for twenty-two (22) project based vouchers,, only after the staff has determined that the Project has been constructed in accordance with the requirements set forth in the AHAP and any other standard requirements as described in the Administrative Plan and 24 CFR ; and 5. This resolution shall take effect immediately. APPROVED AS TO FORM AND LEGALITY: Dianne Jackson McLean, Goldfarb & Lipman LLP, Special Legal Counsel Date: REVIEWED BY: Barbara T. Smith, Acting Executive Director Date: 44

45 STAFF REPORT SAN FRANCISCO HOUSING AUTHORITY BOARD OF COMMISSIONERS Agenda Category: Agenda Title: Action Item Leased Housing Department RESOLUTION AUTHORIZING THE ACTING EXECUTIVE DIRECTOR TO SELECT AND ENTER INTO A PROJECT-BASED HOUSING ASSISTANCE PAYMENT CONTRACT FOR 250 KEARNY STREET, SAN FRANCISCO, CALIFORNIA NOT TO EXCEED A TOTAL OF 130 HUD-VETERANS AFFAIRS SUPPORTIVE HOUSING (VASH) PROJECT BASED SECTION 8 VOUCHERS Presented By: Allyn Hayes, Program Manager II SUMMARY: The San Francisco Housing Authority ( the Authority ) administers the U.S. Department of Housing and Urban Development ( HUD ) Section 8 Project Based Voucher ( PBV ) program in the City and County of San Francisco. The Authority was awarded seventy-five (75) project-based HUD-VASH vouchers specifically for 250 Kearny Street, San Francisco, California as part of the Authority s response to a Notice of Funding Availability (NOFA) in The Authority received approval on April 24, 2014 from the Authority s Board of Commissioners to enter into a project-based Housing Assistance Payment (HAP) contract for these seventy-five (75) HUD-VASH vouchers. In August 2014, the Authority received a non-competitive request from the City and County of San Francisco (the "City") to receive project-based voucher funding for an additional fifty-five (55) units at 250 Kearny Street, San Francisco; in accordance with the Authority s Administrative Plan (Section 17.II.A.). The Authority received approval from the Department of Veterans Affairs to project-based these additional fifty-five (55) units. The City has significant experience in managing multifamily housing, including Project Based Voucher units. [Continued on Page 2] Attachments: Resolution A copy of any attached documents is available at the clerk s desk. DEPARTMENT S REQUESTED ACTION: Staff recommends adoption of this Resolution ACTING EXECUTIVE DIRECTOR S RECOMMENDATION: I concur with staff recommendation Development Item No.: 5 Date: August 27,

46 250 Kearny August 27, 2014 Page 2 The City intends to enter into a Master Lease Agreement that will provide site-control and the ability to house chronically homeless veterans. The signing of this lease is contingent on the award of project-based vouchers. The City, as the applicant, qualifies for non-competitive selection because it was previously selected in a competitive process by the Local Homeless Board through a 2013 Continuum of Care competition. The proposal for 250 Kearny Street will provide greater housing opportunity for the City to house chronically homeless veterans utilizing HUD-VASH vouchers. The Department of Veterans Affairs authorized providing the additional project based vouchers for these units. Three (3) Authority staff members reviewed the non-competitive application submission and awarded points pursuant to the application requirements and the Administrative Plan. Exhibit A contains the summary of points awarded by Authority staff members. Copies of the complete application submission can be requested from the department. The Authority proposes to award the voucher funding and enter into a 10-year contract with the condition that the final contract rents continue to match the Authority's Fair Market/Payment Standard, as approved by the Authority Board. Additionally, the award will be made conditionally upon Authority Board's approval and any other standard requirements as described in the Administrative Plan. 46

47 ATTACHMENT I Resolution 47

48 RESOLUTION NO: ADOPTED: RESOLUTION AUTHORIZING THE ACTING EXECUTIVE DIRECTOR TO SELECT AND ENTER INTO A PROJECT-BASED HOUSING ASSISTANCE PAYMENT CONTRACT FOR 250 KEARNY STREET, SAN FRANCISCO, CALIFORNIA NOT TO EXCEED A TOTAL OF 130 HUD-VETERANS AFFAIRS SUPPORTIVE HOUSING (VASH) PROJECT BASED SECTION 8 VOUCHERS WHEREAS, The San Francisco Housing Authority ( the Authority ) administers the U.S. Department of Housing and Urban Development ( HUD ) Section 8 Project Based Voucher ( PBV ) program in the City and County of San Francisco; and WHEREAS, the Authority was awarded seventy-five (75) HUD-VASH vouchers specifically for 250 Kearney Street as part of the Authority s response to a Notice of Funding Availability (NOFA) in 2014; and WHEREAS, the Authority received board approval to enter into a project-based Housing Assistance Payment (HAP) contract for seventy-five (75) HUD-VASH vouchers; and WHEREAS, the Authority received a non-competitive request from the City and County of San Francisco (the "City") to project-based an additional fifty-five (55) HUD-VASH vouchers at 250 Kearney Street, San Francisco ("250 Kearney Street") for a total of total of one-hundred thirty (130) HUD-VASH vouchers; in accordance with the Authority s Administrative Plan (Section 17.II.A.); and WHEREAS, the City intends to enter into Master Lease Agreement to lease the units to chronically homeless veterans, and such lease is continued upon the award of project-based vouchers; and WHEREAS, the City qualifies for non-competitive selection because it was previously selected in a competitive process by the Local Homeless Board through a 2013 Continuum of Care Competition; and WHEREAS, the Department of Veterans Affairs authorized the Authority to project-base the additional fifty-five HUD-VASH vouchers; and WHEREAS, the 250 Kearny Street PBV units substantially meet Housing Quality Standards; and WHEREAS, the award will be made conditioned upon City revising the contract rents at 250 Kearny Street to consistent with the Authority Fair Market/Payment Standard and any additional requirements as stipulated in the Administrative Plan. 48

49 NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF COMMISSIONERS OF THE HOUSING AUTHORITY OF THE CITY AND COUNTY OF SAN FRANCISCO THAT: 1. The above recitals are true and correct, and together with the staff report, form the basis for the Board of Commissioners of the San Francisco Housing Authority s ( Board ) actions as set forth in this Resolution; 2. The Acting Executive Director is hereby authorized to select the City for project-based voucher funding at 250 Kearny Street, not to exceed one-hundred and thirty (130) HUD-VASH vouchers. 3. The Authority s selection of this PBV proposal and subsequently placing the 250 Kearny Street Project under a PBV HAP contract, awarding a maximum of one-hundred thirty (130) project based vouchers and entering into a 10-year contract with the City and County of San Francisco is conditional upon the City and County of San Francisco entering into a Master Lease Agreement and obtaining full site control of 250 Kearny Street. 4. This resolution shall take effect immediately. APPROVED AS TO FORM AND LEGALITY: Dianne Jackson McLean, Goldfarb & Lipman LLP, Special Legal Counsel Date: REVIEWED BY: Barbara T. Smith, Acting Executive Director Date: 49

50 STAFF REPORT HOUSING AUTHORITY OF THE CITY AND COUNTY OF SAN FRANCISCO Agenda Category: Agenda Title: Presented By: Action Item Development and Modernization HOPE SF RESOLUTION APPROVING AND AUTHORIZING THE EXECUTION OF THE FIRST AMENDMENT TO LICENSE AGREEMENT (ALICE GRIFFITH HOUSING DEVELOPMENT) BETWEEN THE HOUSING AUTHORITY OF THE CITY AND COUNTY OF SAN FRANCISCO AND C.P. DEVELOPMENT CO., LP, RELATED TO INFRASTRUCTURE WORK Alicia Sisca, Director, Housing Development and Modernization SUMMARY: On February 27, 2014, the Board of Commissioners of the Housing Authority of the City and County of San Francisco (the "Board" or "Authority") approved that certain License Agreement dated April 25, 2014 between the Authority and C.P. Development co., LP (the "Master Developer") to provide access to a portion of the Alice Griffith site (as defined below) for certain site preparation work (the "Original License Agreement"). The Original License Agreement permits the Master Developer to have access to a portion of the Alice Griffith public housing site ( the "Alice Griffith Site"), to do certain grading and other site preparation work in the Permitted Area (as defined therein), and shown on Attachment A. The Master Developer now desires to expand the permitted work and the permitted area of the Original License Agreement to complete construction of certain infrastructure improvements, which will support the Alice Griffith Replacement Housing Projects (as defined below). [Continued on Page 2] Attachments: Attachment A -Permitted Area Attachment B- First Amendment to the License Agreement Attachment C: Resolution A copy of any attached documents is available at the clerk s desk. DEPARTMENT S REQUESTED ACTION Staff recommends adoption of this Resolution ACTING EXECUTIVE DIRECTOR S RECOMMENDATION: I concur with staff recommendation Development Item No.: 6 Date: August 27,

51 Alice Griffith License Agreement August 27, 2014 Page 2 of 2 BACKGROUND The Authority and Double Rock Ventures, LLC, an affiliate of McCormack Baron Salazar, Inc. (the "Developer") entered into that certain Exclusive Negotiating Rights Agreement dated October 14, 2010, as amended ("ENRA"), which provides for among other matters, the terms under which the Developer will cause the demolition of the public housing units on the Alice Griffith Site; and the construction and development of two hundred and fifty six (256) public housing replacement units, and an additional two hundred and forty eight (248) affordable rental units on a portion of the Alice Griffith Site (collectively, the "Alice Griffith Replacement Housing Projects"). The Alice Griffith Replacement Housing Projects are part of a major redevelopment project of the Hunters Points Shipyard and Candlestick Point Development, which is being developed pursuant to the terms of that certain Disposition and Development Agreement dated June 3, 2010 between the former Redevelopment Agency of the City and San Francisco, now the Office of Community Investment and Infrastructure (the "Agency" or "OCII") and the Master Developer (the "Agency DDA"). The Master Developer has commenced the construction of certain infrastructure improvements on the portion of the site owned by the Agency and recently obtained the approval of the Agency to commence the installation of certain infrastructure improvements which will support the Alice Griffith Replacement Housing Units. In connection with the Agency's approval, the Master Developer has requested an amendment to the Original License Agreement (the "Amendment", collectively, the Amendment and the Original License Agreement shall be referred to as the "License Agreement") to: (i) expand the scope of the Permitted Work to (a) include the construction of certain infrastructure improvements, including utility work of storm drain, sanitary sewer, recycled water, low pressure water, Auxiliary Water Supply System (AWSS), joint trench and electrical work, landscape and irrigation, Automated Waste Collection System (AWSC); streetscape, street furnishing, roadway section, signage and striping; earthwork; dust control and erosion control; and (b) the construction of a sewer infrastructure improvement on Griffith Street, which will consist of a new sewer system and certain ancillary work to such system, and other underground utility improvements as shown on Attachment B; (ii) expand the Permitted Area as shown on Attachment B, to construct the Permitted Work as described above, and (iii) to authorize the Acting Executive Director to make nonmaterial changes to the License Agreement, as necessary, in connection with the construction of the infrastructure improvements. There is no change in the term of the Original License Agreement, which will ends no later than January 1, By January 1, 2015, the parties intend to have entered into a Master Development Agreement and the Ground Leases for the Alice Griffith Replacement Housing Projects. 51

52 Attachment A Permitted Area 52

53 53

54 Attachment B First Amendment to License Agreement 54

55 FIRST AMENDMENT TO LICENSE AGREEMENT (ALICE GRIFFITH HOUSING DEVELOPMENT) This FIRST AMENDMENT TO LICENSE AGREEMENT (ALICE GRIFFITH HOUSING DEVELOPMENT) (this Amendment ), dated August, 2014, is made by and between the Housing Authority of the City and County of San Francisco, a public body, corporate and politic (the Authority ), and CP Development Co., LP, a Delaware limited partnership ( Developer ). RECITALS A. The Authority and Developer have entered into that certain License Agreement (Alice Griffith Housing Development), dated March 5, 2014 (the Original Agreement ), which provides Developer a license to enter onto certain real property owned by the Authority to undertake certain Permitted Work related to the eventual replacement of Alice Griffith, as more particularly described in the Original Agreement. Such Permitted Work principally included grading and related activities required prior to Developer undertaking installation of roads, utilities and other improvements to support such replacement. B. Under the Agency DDA the Agency has given a Sub-Phase Approval dated March 7, 2014 (as amended and supplemented from time to time, the CP-01 Sub-Phase Approval ) related to Developer s installation of Infrastructure (as defined in the Agency DDA) at the Site and in the vicinity of the Site to support the replacement of Alice Griffith. The Infrastructure to be constructed under the CP-01 Sub-Phase Approval included the Permitted Work set forth in the Original Agreement and other work to complete such Infrastructure, including construction of new roads, utilities and other Infrastructure improvements. C. Developer has determined that the Permitted Work under the Original Agreement is nearing completion, and Developer is ready to commence, subject to the conditions precedent set forth in the Original Agreement, installation of the remaining Infrastructure, including on the Permitted Area. D. The Authority and Developer now desire to amend the Original Agreement in order to permit Developer to undertake the activities required by Developer to fulfill its obligations to complete the Infrastructure on the Permitted Area in accordance with the CP-01 Sub-Phase Approval. AGREEMENT NOW, THEREFORE, in consideration of the mutual covenants and agreements contained herein and in the Original Agreement, and for other good and valuable consideration (the receipt and sufficiency of which are hereby expressly acknowledged), and with the foregoing Recitals incorporated by reference, the parties hereto, intending to be legally bound hereby, covenant and agree as follows: 1. Defined Terms. Any capitalized term set forth but not defined herein shall have the meaning ascribed to such term in the Original Agreement. 55

56 2. Permitted Work. In addition to the Permitted Work under the Original Agreement, the Permitted Work shall include the activities required for Developer to fulfill its obligations to complete the Infrastructure on the Permitted Area in accordance with the CP-01 Sub-Phase Approval. Such Infrastructure generally includes utility work, including storm drain, sanitary sewer, recycled water, low pressure water, AWSS (Auxiliary Water Supply System), joint trench and electrical work, landscape and irrigation, AWCS (Automated Waste Collection System) and undergrounding of existing utilities, streetscape, street furnishings, roadway sections, signage and striping, earthwork, dust control and erosion control, all as more particularly described in the CP- 01 Sub-Phase Approval (and the underlying Sub-Phase Application). In addition, the Permitted Work shall include installation of the new combined sewer system on Griffith Street, including ancillary work required in connection therewith such as demolition and disposal of existing pavement and above ground structures, decommissioning of associated underground infrastructure, and removal disposal of miscellaneous vegetation and debris. Upon completion of construction of the Infrastructure on the Permitted Area in accordance with the Agency DDA, the Authority shall be deemed to be the owner of such improvements located on real property then owned by the Authority (if any), and upon request of the Authority, Developer shall execute such documents reasonably necessary to evidence such ownership; provided, however, the Authority shall have no liability for such Infrastructure, including, but not limited to, any latent or patent defects, all of which shall be subject to section 14 of the Original Agreement. 3. Permitted Area. In order to accomplish the Permitted Work related to the utility improvements described in Section 2, the Permitted Area is hereby expanded to include portions of Griffith Street within the Site as generally depicted on Exhibit A and that are owned by the Authority. 4. Approvals and Further Amendments. Except where an approval or other action to be given or undertaken by the Authority under the Agreement is expressly required in the Agreement to be approved or undertaken by the Authority Commission, such approvals or other actions may be given or undertaken, as applicable, by the Authority Executive Director or his or her designee on behalf of the Authority. Furthermore, except to the extent that the approval of the Authority Commission is required under the Agreement, the Authority Executive Director is authorized to execute and deliver on behalf of the Authority any amendments or implementing documents with respect to the Agreement, including additions to the Permitted Area and the Permitted Work, with any person or entity if the Authority Executive Director determines that such execution and delivery are necessary or proper to achieve the purposes and objectives of the Agreement and are in the Authority s best interests. 5. No Conflicts. Except as expressly provided herein, the Original Agreement shall remain in full force and effect. In the event of any conflict or inconsistency between any provision of this Amendment and any provision of the Original Agreement, this Amendment shall govern and control. 6. Ratification. The Original Agreement, as amended hereby, is and shall remain in full force and effect in accordance with its terms and is hereby ratified and confirmed in all respects. The execution and delivery of this Amendment shall not operate as a waiver of or, except as expressly set forth herein, an amendment of any right, power or remedy of either party in effect prior to the date hereof. 56

57 7. Counterparts. This Amendment may be executed in any number of counterparts, each of which, when so executed and delivered, shall be deemed an original, and all of which together shall constitute one and the same instrument. This Amendment shall become effective when the parties have duly executed and delivered signature pages of this Amendment to each other. Delivery of this Amendment may be effectuated by hand delivery, mail, overnight courier or electronic communication (including by PDF sent by electronic mail, facsimile or similar means of electronic communication). Any signatures (including electronic signatures) delivered by electronic communication shall have the same legal effect as physically delivered original signatures. 8. Authority. The Authority and Developer each represent and warrant to the other that they have full power and authority to execute and deliver this Amendment, that no notice of this Amendment is required to any other party as a precondition to the effectiveness of the terms set forth herein, and that the signatories to this Amendment are authorized to sign on their behalf. 9. Governing Law. This Amendment shall be governed by and construed in accordance with the laws of the State of California without regard to any principles of conflict of laws. For this purpose the parties shall be deemed to reside in such state and this Amendment shall be deemed to be performed exclusively in such state. Venue of any proceeding shall be exclusively in a forum of proper jurisdiction in such state or in the City and County of San Francisco, California. [Signature Page Follows] 57

58 IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly executed the day and year first above written. APPROVED AS TO FORM: Dianne Jackson McLean Goldfarb & Lipman LLP Special Legal Counsel AUTHORITY: HOUSING AUTHORITY OF THE CITY AND COUNTY OF SAN FRANCISCO, a public body corporate and politic By: Name: Barbara T. Smith Title: Acting Executive Director DEVELOPER: CP DEVELOPMENT CO., LP, a Delaware limited partnership By: CP/HPS Development Co. GP, LLC, a Delaware limited liability company, its General Partner By: Name: Kofi Bonner Title: President ACKNOWLEDGED: THE SHIPYARD COMMUNITIES LLC, a Delaware limited liability company, By: Name: Kofi Bonner Title: President 58

59 EXHIBIT A Expanded Permitted Area 59

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