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4/1/24 COUNCIL MINUTES
CITY OF CRESCENT CITY
Mayor Blake Inscore Mayor Pro Tem Ray Altman
Council Member Jason Greenough Council Member Kelly Schellong Council Member Isaiah Wright
MONDAY APRIL 1, 2024 6:00 P.M.
OPEN SESSION
Call to order Mayor Inscore called the meeting to order at 6:01 p.m.
Roll call Council Members present: Council Member Jason Greenough, Council Member Kelly Schellong, Council Member Isaiah Wright, Mayor Pro Tem Ray Altman and Mayor Blake Inscore
Staff members present: City Manager Eric Wier, City Attorney Martha Rice, City Clerk/Administrative Analyst Robin Altman, Finance Director Linda Leaver, Public Works Director Dave Yeager, Economic Development and Recreation Director Ashley Taylor, Housing Authority Executive Director Megan Miller (via Zoom), Grants Coordinator Bridget Lacey (via Zoom), Fire Chief Kevin Carey and Police Chief Richard Griffin Pledge of Allegiance led by Mayor Inscore
CEREMONIAL ITEMS
• Child Abuse Prevention Month Proclamation
Mayor Inscore read the proclamation aloud and presented it to Jamie Gormly, of the CAPC Committee. Ms. Gormly read some statistics to the Council about Del Norte County’s number of child abuse cases.
• Sexual Assault Awareness Month Proclamation
Mayor Inscore read the proclamation aloud and presented it to Kira Morse of Northcoast Rape Crisis Team (NCRCT). Ms. Morse went over the services NCRCT offers as well as the number of sexual assaults that have happened in Del Norte County.
REPORTS AND PRESENTATIONS
• Kamome Event
• Swim Camp Report
• Tsunami Anniversary
MINUTES
REGULAR MEETING OF THE
CITY COUNCIL OF THE CITY OF CRESCENT CITY
FLYNN CENTER BOARD CHAMBERS
981 H STREET
CRESCENT CITY, CA 95531
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Economic Development and Recreation Director Taylor reported to the Council the upcoming Kamome event. On Thursday, April 11th at 4pm, a delegation from Rikuzentakata arriving at the airport. Director Taylor invited the community to welcome them here. For this year’s event, there will be an Emergency Preparedness Children’s event with first responders, emergency preparedness activities, and Sister City card craft event. A Taiko trained drum group called Unit Souzou will be April 12th from 7pm – 9pm at the Cultural Center. Details for the full event can be found at kamomefestival.com. This whole event is completely free for the community.
Director Taylor said the Swim Camp for last week was very successful. Crescent City Police Department and Crescent City Fire and Rescue were present to speak to the children. National Parks was also in attendance to teach the kids about our local wildlife.
Director Taylor also reported to the Council about the 60th Tsunami Anniversary Memorial. Which ended with a Candlelight Vigil at the tsunami memorial fountain in Mason Mall. Mayor Inscore said that the Camp was well done, he had two children attend for the week and they had a great time.
PUBLIC COMMENT PERIOD
There were no comments from the public.
CONSENT CALENDAR
1. Warrant Claims List
• Recommendation: Receive and file the warrant claims list for the period March 9, 2024 through April 22, 2024.
2. Council Meeting Minutes
• Recommendation: Approve and adopt the January 22, 2024 and March 18, 2024 meeting minutes of the City Council.
3. Payroll Report
• Recommendation: Receive and file the biweekly payroll reports for the period ending March 23, 2024, paid March 29, 2024.
4. Declaring the Continuance of an Emergency Due to Continuous Slide Activity Along Pebble Beach Drive
• Recommendation: Declare by a 4/5 vote that there is a need to continue the emergency action for the continuous slide activity along Pebble Beach Drive between 7 th and 8th Streets per Public Contract code § 22050
5. Measure S Oversight Committee Appointments
• Recommendation: Confirm the Mayor’s appointments of Ernie Perry and Dana Reno to the Measure S Oversight Committee
6. Budget-to-Actual Financial Reports for February 2024 • Recommendation: Receive and file budget-to-actual financial reports of the City’s major operating funds for Fiscal Year 2023-24 as of February 29, 2024 Council Member Schellong asked for item 1 to be pulled from the consent calendar as she will be recusing herself due to a conflict of interest (Bicoastal Media and clients)..
Mayor Inscore asked for item 5 to be pulled so the appointees could be recognized. 3 | P a g e
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There were no comments from the public on items 2, 3, 4, and 6 of the consent calendar.
On a motion by Council Member Schellong, seconded by Council Member Wright, and carried unanimously on a 5-0 polled vote, the City Council of the City of Crescent City adopted items 2, 3, 4, and 6 of the consent calendar as presented.
There were no comments from the public on item 1 of the consent calendar.
On a motion by Council Member Wright, seconded by Council Member Greenough, and carried on a 4-0-1 polled vote with Council Member Schellong recusing herself, the City Council of the City of Crescent City adopted item 1 of the consent calendar.
Council Member Schellong stated that she has worked with the two men on the Measure S Oversight Committee and recommends them both. Council Member Greenough thanked the appointees for volunteering their time.
There were no comments from the public on item 5 of the consent calendar.
On a motion by Council Member Greenough, seconded by Council Member Schellong, and carried unanimously on a 5-0 polled vote, the City Council of the City of Crescent City confirmed the Mayor’s appointments of Ernie Perry and Dana Reno to the Measure S Oversight Committee.
Mr. Perry and Mr. Reno both addressed the Council stating they were happy to continue serving the community on the Measure S Oversight Committee.
PUBLIC HEARING - None
CONTINUING BUSINESS
7. Change Order 6 for Continuation of Front Street From I to Play Street and Allocate Additional Street and Sewer Funds
• Recommendation: Hear staff report
• Technical questions from Council
• Receive public comment
• Further Council discussion
• Authorize the City Manager to sign Contract Change Order #6 with Tidewater Contractors in the amount of $1,351,319.00 for Bid Additive Items for the continuation of construction on Front Street from I to Play Street
• Approve and adopt Resolution No. 2024-19, A RESOLUTION OF THE CITY
COUNCIL OF THE CITY OF CRESCENT CITY AMENDING THE FISCAL YEAR 2023-24 BUDGET OF THE CITY OF CRESCENT CITY
Public Works Director Yeager gave a PowerPoint presentation detailing all of the work that has been done on Front Street and what the next phases look like. He went over the nine funding sources that has made this project possible. The funding is as follows: authorized Measure S funds $516,233; American Rescue Plan Act (ARPA) funding $1,186,391; City General Fund $97,376; Del Norte Local Transportation Commission (DNLTC) $400k; DNLTC/Coronavirus Response and Relief Supplemental Appropriations Act (CRRSA) State Transportation Improvement Program (STIP) Funding $315k; DNLTC/CRRSA TIP funding $200k, Community project grant from Senator Huffman $750k Water Fund (for water main improvements $350k, and sewer fund for sewer main improvements $9,398. To complete the construction of Front Street between I Street and the Play Street including that intersection, Contract Change Order #6 includes the entire bid additive, less the water items that were already included in CCO #1. The 4 | P a g e
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combined total of the adjusted scope of work is $1,351,319.00. To complete the storm drain work through the Play Street intersection, an existing sanitary sewer line which was running through an existing storm drain manhole has to be relocated. Therefore the project needs to add sewer funds for sewer plan drawings so a cost for this sewer work can be obtained from the contractor.
Although exact costs will not be known until the design is complete, the total estimated cost of the sewer improvements is $35,000. City Manager Wier stated for clarification, the Wastewater Treatment Plant (WWTP) is operating correctly, the storm water goes where it should and the sewage goes where should. City Manager Wier stated that the $33k will come from ARPA funding to authorize the change order. Staff will be going before the Measure S Oversight Committee to request $75k for contingency funds. Council Member Schellong stated that she is amazed at how many funding sources have been obtained for this project. She asked for Director Yeager to explain why there is the landscaping aspect down the middle of the road; Director Yeager stated that it narrows the width of the road and has improved pedestrian safety. Council Member Greenough asked what the completion date of the project; Director Yeager stated it would be concluded in 3 months.
There were no comments from the public.
On a motion by Council Member Wright, seconded by Council Member Schellong, and carried unanimously on a 5-0 polled vote, the City Council of the City of Crescent City authorized the City Manager to sign Contract Change Order #6 with Tidewater Contractors in the amount of $1,351,319.00 for Bid Additive Items for the continuation of construction on Front Street from I to Play Street and approved and adopted Resolution No. 2024-19, A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CRESCENT CITY AMENDING THE FISCAL YEAR 2023-24 BUDGET OF THE CITY OF CRESCENT CITY and directed staff to go to Measure S for $75k in contingency funds.
NEW BUSINESS
8. Agreement with Badawi & Associates for Financial Auditing Services • Recommendation: Hear staff report
• Technical questions from the Council
• Receive public comment
• Further Council discussion
• Approve and authorize the City Manager to sign the Professional Services Agreement with Badawi & Associates
Director Leaver reported to the Council that the Badawi and Associates contract for audit services just ended. She outlined the Audit Committee’s process in order to review proposals and interview the applicants. After a lengthy committee discussion, Badawi and Associates was selected as the firm to be recommended to Council. There were two proposals received, Badawi and Associates was not the lowest cost proposal, but they had the best background and experience, and therefore was selected by the Audit Committee.
There were no comments from the public.
On a motion by Council Member Greenough, seconded by Council Member Schellong, and carried unanimously on a 5-0 polled vote, the City Council of the City of Crescent City authorized the City Manager to sign the Professional Services Agreement with Badawi & Associates.
9. Home Investment Partnerships Program 2022-2023 Application for Valhalla Townhomes
• Recommendation: Hear staff report
• Technical questions from the Council
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• Receive public comment
• Further Council discussion
• Approve and adopt Resolution No. 2024-21, A RESOLUTION OF THE CITY
COUNCIL OF THE CITY OF CRESCENT CITY AUTHORIZING THE SUBMITTAL OF
AN APPLICATION FOR HOME INVESTMENT PARTNERSHIPS PROGRAM FUNDING UNDER THE 2022-2023 NOFA FOR VALHALLA TOWNHOMES LOCATED AT 911 PACIFIC AVENUE IN THE AMOUNT OF $3,150,000 • Authorize the City Manager to sign and submit the Applicant Certification and Commitment of Responsibility
City Manager Wier stated that staff has worked very hard to increase housing for our community.
This particular project is overhauling an apartment complex which is becoming more and more of a bigger project. City Manager Wier stated that the resolution that was in the agenda packet had the incorrect dollar figure and would need to be changed to the correct amount of $3,150,000.
This is a new program for the CIty and will be the first time we have applied this. Within the agreement, Raymond Junior, of GS Valhalla, LP, will be responsible for paying the City annually through the life of the project. The loan is for 55 years and upon the end of that loan, it is due to be paid in full. Council Member Schellong stated that she thought they had already went over something for this project; City Manager Wier stated we have, there has been the execution of a revised Low-and-Moderate-Income Housing Asset Loan Agreement between the City and GS Valhalla, LLP, a contract term for Project Based Vouchers, adopting Resolution No. 2023-63, A Resolution of the City Council of the City of Crescent City Authorizing and Directing Execution of a Joint Exercise of Powers Agreement Relating to the California Municipal Finance Authority and Approving the Issuance of Exempt Facility Bonds for a Qualified Residential Rental Project by the Authority for the Purpose of Financing or Refinancing the Acquisition, Rehabilitation and Improvement of Certain Facilities for the benefit of GS Valhalla, LP. This funding will make it a much more viable project. Council Member Greenough asked that since the City is working with a developer for funding this project, is there some risk to the City for entering into this loan. Mr.
Junior stated that it is a loan to him and a grant to the City; the City will not have to pay anything back to the State at end of the 55 years. Grant Coordinator Lacey stated that if the loan is defaulted on, the City would then be responsible for the balance. Mr. Junior stated that he has several agencies that are watching over his shoulder. Mr. Hastings of CDBG has been working in the HOME program for 20 years. There has not been one time where the money was asked to be returned to the State. They always try to work to save the project. Council Member Greenough asked that if we were to enter into this loan, would that impact the City’s ability to be able to apply for future loans; City Manager Wier stated that since it is a grant to the City, it should have no impact. Grants Coordinator Lacey stated that it would be very uncommon for the loan to fail because HCD would do whatever necessary to have the project succeed. City Attorney Rice stated that this is a grant, it is not a loan on the books and will not create cash flow issues to us.
Council Member Schellong asked for clarification on the 55-year loan; City Attorney Rice stated that the mandatory payment is not a set amount. At 55-years, whatever the outstanding balance is, is due payable at that time. Mayor Inscore asked if staff has reached out to Urban Futures to see if doing this would impact the City’s ability to get future loans. City Manager Wier stated that staff can ask; it is their understanding that it will not impact our ability to get another loan. Mr.
Raymond stated that if he were not doing what was required of him, the investors and the State would kick him out. Mayor Inscore stated that he is comfortable with the action tonight as long as there is a contingency that staff will reach out to Urban Futures to get information on whether or not this will impact the City’s ability to apply for a loan.
Roger Gitlin: asked if it is a full amortized loan with no interest rate; what is the end result when 55 years. Mr. Hastings stated it is a 3% simple interest loan, payable from 50% of the residual receipts. He stated that Mr. Junior is correct when he said he would be removed from the project if he doesn’t meet his requirements. The loan could also be forgiven at the end of 55 years. 6 | P a g e
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On a motion by Council Member Schellong, seconded by Mayor Pro Tem Altman, and carried unanimously on a 5-0 polled vote, the City Council of the City of Crescent City approved and adopted Resolution No. 2024-20, A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CRESCENT CITY AUTHORIZING THE SUBMITTAL OF AN APPLICATION FOR HOME INVESTMENT PARTNERSHIPS PROGRAM FUNDING UNDER THE 2022-2023 NOFA FOR VALHALLA TOWNHOMES LOCATED AT 911 PACIFIC AVENUE IN THE AMOUNT OF $3,150,000 and authorized the City Manager to sign and submit the Applicant Certification and Commitment of Responsibility and after staff has confirmed with Urban Futures that this will not affect the City’s ability to obtain debt financing for other projects.
CITY COUNCIL ITEMS
➢ Reports, Concerns, Referrals, Council travel and training reports Council Member Schellong: attended the 60th Anniversary of the Tsunami; attended the City staff meeting for fire extinguisher training.
Council Member Wright: went to a dinner to hear about grant funding to be used; would like to see the return of the Noll Surf Classic
Council Member Greenough attended the 60th Anniversary of the Tsunami Mayor Pro Tem Altman: nothing to report
Mayor Inscore: the City of Rikuzentakata commissioned their mural that was gifted to them by the City of Crescent CIty.
➢ Legislative Matters – None
➢ City Manager Report and City Council Directives – City Manager Wier reported the following to the Council:
o Measure S Oversight Committee meets on Wednesday, April 3rd o Special Council meeting Monday, April 8th at 5:30 p.m. at the WWTP o Clean California will fund the pedestrian piece; there $3.3 million awarded by CDBG so now, Front Street will be complete. Just got notification that we have been awarded $1million for the storm drain project on F Street. o Thanked everyone for their work on the CASA event this past weekend. o Chief Griffin reported to the Council that there is a Crescent City Cyber Unit that wages assault against crimes against children.
ADJOURNMENT
There being no further business to come before the Council, Mayor Inscore adjourned the meeting at 7:59 p.m. to a special meeting of the City Council of the City of Crescent City on Monday, April 8, 2024 at 5:30 p.m. in the Flynn Center, 981 H Street, Crescent City, CA 95531.
ATTEST:
____________________________
Robin Altman
City Clerk/Administrative Analyst