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HomeMy WebLinkAboutAGENDA REPORT 2013 0904 CCSA REG ITEM 10G ITEM 10.G. MOORPARK CITY COUNCIL ,,iiy CouncO Weer-fsn¢ AGENDA REPORT — = a0L3 �rn��PA '4013 —3ai 7 TO: Honorable City Council FROM: Jessica Sandifer, Management An DATE: August 26, 2013 (CC Meeting of 09/ /13) SUBJECT: Consider Resolution Amending the Budget for Fiscal Year 2013114 for Repairs at 250 Los Angeles Avenue BACKGROUND & DISCUSSION The former Redevelopment Agency purchased 250 Los Angeles Avenue for road right- of-way and affordable housing purposes. Since the house was in good condition, and the timeline for development of the affordable housing was uncertain, staff rented the property to a tenant. The lease term began in May 2008. The property was subsequently transferred to the City upon dissolution of the Redevelopment Agency and the City's assumption of the housing responsibilities of the former Redevelopment Agency. In May 2013, the tenants gave their 30-day notice to move out. When staff inspected the home after the tenants had moved out it was discovered that the conditions in the home were deplorable. All of the floor coverings need to be removed and replaced. All of the walls and doors need to be re-painted. In addition, there are various deferred maintenance items that we were not notified of that need to be repaired. Since the development timeline for the affordable housing is still uncertain, staff is requesting a budget amendment for funding to prepare the home to be rented again. Future rentals will include slightly higher rent (from prior rent of $1,550 to $1,650); no pets and periodic scheduled inspections. FISCAL IMPACT During the five (5) year, one month term of the rental agreement, the City received $95,428 in rental revenue for this property. In addition, the City has retained a security deposit of $1,550 and a pet cleaning deposit of $200. Considering the condition of the home, we are retaining these security deposits. Staff has received informal bids for the work and is requesting $17,000 for repairs to the home including new carpet, and linoleum, painting, termite tenting, miscellaneous deferred maintenance repairs, general clean-up and a 10% project contingency for unforeseen circumstances. The house will be rented for $1,650/mo so the costs of the repairs will be recouped within ten (10) months. 294 Honorable City Council September 4, 2013 Page 2 STAFF RECOMMENDATION (ROLL CALL VOTE) Adopt Resolution No. 2013- , appropriating $17,000.00 from the City Affordable Housing Fund (2201) for the repairs at 250 Los Angeles Avenue. Attachment - Resolution 295 ATTACHMENT 1 RESOLUTION NO. 2013- A RESOLUTION OF CITY COUNCIL OF THE CITY OF MOORPARK, CALIFORNIA, AMENDING THE FISCAL YEAR 2013/2014 BUDGET BY APPROPRIATING $17,000.00 FROM THE CITY AFFORDABLE HOUSING FUND (2201) FOR REPAIRS AT 250 LOS ANGELES AVENUE WHEREAS, on June 19, 2013, the City of Moorpark adopted the Operating and Capital Improvement budget for Fiscal Year 2013/14; and WHEREAS, a staff report has been presented to the City Council requesting additional appropriation to fund repair work at 250 Los Angeles Avenue; and WHEREAS, a budget adjustment in the aggregate amount of $17,000.00 is requested for this work; and WHEREAS, Exhibit "A", attached hereto and made a part hereof, describes said budget amendment and the resultant impact to the budget line item. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF MOORPARK DOES HEREBY RESOLVE AS FOLLOWS: SECTION 1. A budget amendment in the amount of $17,000.00 from the City Affordable Housing Fund (2201) as more particularly described in Exhibit "A", attached hereto, is hereby approved. SECTION 2. The City Clerk shall certify to the adoption of this resolution and shall cause a certified resolution to be filed in the book of original resolutions. PASSED AND ADOPTED this 4th day of September, 2013. Janice S. Parvin, Mayor ATTEST: Maureen Benson, City Clerk Exhibit A— Budget Amendment 296 EXHIBIT A BUDGET AMENDMENT FOR City Affordable Housing Fund for Repairs to 250 Los Angeles Avenue 2013114 FUND ALLOCATION FROM: Fund Account Number Amount City Affordable Housing Fund 2201-5500 $ 17,000.00 Total $ 17,000.00 DISTRIBUTION OF APPROPRIATION TO EXPENSE ACCOUNTS: Account Number Current Budget Revision Amended Budget 2201.2420.5065.9252 $ 1,500.00 $ 17,000.00 $ 18,500.00 Total $ - $ - $ - Approved as to Form: 297