2017-01 Approving Pacific Pines Property Assessment RESOLUTION EHA 2017-01
A RESOLUTION OF THE CITY OF ENCINITAS HOUSING AUTHORITY (EHA) BOARD
APPROVING THE PACIFIC PINES PROPERTY CONDITION ASSESSMENT AND
REPLACEMENT SCHEDULE; AUTHORIZING THE EHA EXECUTIVE DIRECTOR TO AMEND
THE CONTRACT WITH HYDER & COMPANY TO ALLOW HYDER TO INCUR ADDITIONAL
COSTS, UTILIZING THEIR OPERATING BUDGET, FOR THE WORK IDENTIFIED IN THE
REPLACEMENT SCHEDULE; AUTHORIZING THE EXECUTIVE DIRECTOR TO INCLUDE
THE REPLACEMENT SCHEDULE WORK AND FUNDS IN SUBSEQUENT PROPERTY
MANAGEMENT CONTRACTS; AND, AUTHORIZING THE TRANSFER OF FUNDS FROM
THE PACIFIC PINES AVAILABLE FUND BALANCE AS NEEDED.
WHEREAS, there is a shortage of decent, safe, and sanitary housing which is affordable to
lower-income households in the City of Encinitas and a consequent need to encourage the creation and
availability of affordable rental units for lower-income households, and;
WHEREAS, the City of Encinitas Housing Authority (EHA) approved the purchase of sixteen
condominium units at Pacific Pines to provide rental units for low-income households, located on South
El Camino Real in 2003, and;
WHEREAS, the EHA contracts with a professional property management firm to manage and
maintain the rental units, and:
WHEREAS, the EHA seeks to plan for the long-term maintenance needs of the units in order to
keep the units in good condition, and;
WHEREAS, a Property Assessment Condition and Replacement Schedule was prepared by
Real Property Reporting Services, LLC in December 2016, which outlines the useful life and estimated
remaining life of all major components of the rental units, and provides the annual cost required for
adequate maintenance of the sixteen units, and;
WHEREAS, based on the Replacement Schedule, the total costs over a six-year period from FY
2017-18 through FY 2022-23 are estimated at $142,246, and;
WHEREAS, a Capital Improvement Project will be created and included in the City's six-year
budget cycle for FY 2017-18 through FY 2022-23, and;
WHEREAS, the City and Hyder & Company entered into an agreement effective April 1, 2016,
for the property management and maintenance of the sixteen EHA owned condominium units at Pacific
Pines and based on satisfactory performance in the judgement of the EHA, and at the sole discretion of
the EHA Executive Director, the EHA may extend that agreement for an additional two-year period
ending on March 31, 2019, and,
WHEREAS, the available balance in the Pacific Pines Reserve Fund is currently $444,725.
NOW, THEREFORE, BE IT RESOLVED, by the EHA Board as follows:
1. That the foregoing recitations are true and correct.
2. The EHA hereby approves the Pacific Pines Property Condition Assessment and
Replacement Schedule.
3. The EHA authorizes the Executive Director, to amend the current contract with Hyder &
Company to include additional work related to the Replacement Schedule and include an
additional contract amount not to exceed $38,633 for the remainder of the existing contract,
until March 31, 2019, if so extended per the EHA Executive Director. The EHA authorizes the
EHA Executive Director to include the replacement schedule work and funds in subsequent
property management contracts.
4. The EHA authorizes the transfer of funds from the Pacific Pines Available Fund Balance if
the operating budget is unable to accommodate all of the necessary work in accordance with
the Replacement Schedule.
5. A new Capital Improvement Project has been created to be incorporated into the City's six-
year Capital Improvement and Work Projects budget request cycle, which will be considered
by the City Council in spring 2017. The total anticipated cost for the work outlined in the
Replacement Schedule over a six-year period (FY 2017-18 through FY 2022-23) is
$142,246.
6. The action before the EHA Board is adoption of Resolution No. EHA 2017-11, approving the
Pacific Pines Property Condition Assessment and Replacement Schedule, and authorizing
the amendment of the property management contract to allocation additional funds to
accommodate all of the necessary work in accordance with the Replacement Schedule,
which is exempt from environmental review pursuant to Section 15060 (c) (2) and (c) (3) of
the Guidelines of the California Environmental Quality Act (CEQA) in that the activity will not
result in a direct or reasonably foreseeable indirect physical change in the environment; and
the activity is not a project as defined in Section 15378 of the CEQA Guidelines.
PASSED AND ADOPTED this 22nd day of March, 2017, by the following vote, to wit:
AYES: Blakespear, Boerner Horvath, Kranz, Mohler, Mosca, Muir
NAYS: None
ABSTAIN: None
ABSENT: Chavez
Catherine S. Blakespear, Chairperson
ATTEST:
Kathy Hol ywoo , Secretary