HomeMy WebLinkAboutStaff Report 4.A 03/18/2019p, L
I85�
DATE:
TO:
FROM:
SUBJECT
Agenda Item #4.A
March 18, 2019
Honorable Mayor and Members of the City Council through City Manager
Sue Castellucci, Housing Administrator
City Council Discussion and Direction Regarding Petaluma Ecumenical Properties
Request for Additional City Housing Funds for the Affordable Housing
Development at 951 Petaluma Blvd. South
RECOMMENDATION
It is recommended that the City Council discuss and provide direction regarding Petaluma
Ecumenical Properties request for additional City housing funds for the affordable housing
development at 951 Petaluma Blvd. South
BACKGROUND
The affordability of housing in Petaluma has long been of interest to Petaluma City Councils.
City programs have done much to provide housing for every income level, with emphasis on
first-time homebuyers, very -low and low and moderate -income residents, and the homeless, all
when funding was more plentiful.
The City of Petaluma, through the partnership with affordable housing developers, has produced
over 1500 housing units throughout the city. It is through these partnerships that we can fulfill
Council goals and implement the Housing programs as detailed in the 2015-2023 Housing
Element. The housing programs not only had affordable housing built, they also focused on
preserving the affordable housing that the City currently has and prevent the low-income
community from losing their housing.
In April of 2017, Petaluma issued a Request for Proposal for the development of affordable
housing on the property at 951 Petaluma Boulevard South with submissions due on May 8, 2017.
Three proposals were submitted, and staff reviewed all submittals. Interviews were held with all
the proposers during the last week in May 2017. During the interview process it was
communicated that the land would be the City's contribution to the development of the project.
Currently, the City has contributed to the development of the PEP project at 951 Petaluma Blvd
South a total of $1,390,000, which includes the value of the land and predevelopment expenses.
Of that total, $60,000 came from the In -Lieu Housing fund.
At the February 25, 2019 Council meeting, staff was directed to bring this item back with more
details on the potential impacts to the City housing program if the City were to commit
$1,500,000 of In -Lieu Housing funds to this project, which would leave a remaining of
$358,525.
DISCUSSION
PEP is requesting additional funds for their affordable senior project at 951 Petaluma Blvd.
South in the amount of $1,500,000. A current proforma is attached showing the sources and uses
for the development funds. PEP has secured 19 project -based vouchers, which will offset costs,
with the Santa Rosa Housing Authority and has applied for funds with the Homeless Emergency
Aid Program (HEAP) as well as funding from the Affordable Housing Program. According to
their timeline, they will also submit a 4% tax credits application to the California Tax Credit
Application Committee (TCAC) by July 1, 2019. Other funding sources for the project include
the California Multi -Family Housing Program with the application due in the Fall of 2019. No
funding sources, except the City's allocation of $1,390,000, which is primarily based on the
value of the land, have been committed by the City to the Project at this time. PEP is committed
to making this project work and will continue pursue other funding sources for any future
financial gaps.
The completion of this project will increase our Regional Housing Need Allocation (RHNA) in
the Very Low category by 26%. Currently, we have fulfilled 5% of our allocation in that
category. (See table below)
Regional Housing Need Allocation — 2015-2023 (as of 12/31/18)
Income Category Housing Need Permits issued % of Need met
Very Low (0-50% of AMI) 199 9 5%
Low (51% - 80% of AMI) 103 23 22%
Moderate (81%-120% AMI) 121 47 39%
Above Moderate (over 120%
of AMI 322 636 198%
TOTAL UNITS 745 719
In Lieu Housing Fund (Balance - 1,858,525 as of 6/30/19)
The projected balance in the In -Lieu Housing Fund at 6/30/2019 will be $1,858,525. The impact
of allocating these funds to the Project solely from this Fund, will leave a balance of $358,525
and will affect the ability to fund nonprofit agencies that rely on the In -Lieu fees to serve the
low-income community. While it is difficult to estimate projected annual income of anticipated
in lieu fees, $3,500,000 is expected to be generated over the next four years if all projects that
were deemed complete subsequently get entitled and start construction. However, it's likely the
receipt of these anticipated funds will not occur prior to the 2021 fiscal year.
Historically, the City has allocated these funds to local non -profits such as Petaluma People
Services Center (PPSC), Committee on the Shelterless (COTS), Boys & Girls Club, and PEP
Housing for programs that are important to the low-income community in Petaluma.
The funds that PPSC receives go to their Rental Assistance program and their Fair
Housing/Tenant Landlord Mediation program. In FY 17-18 the Rental Assistance Program was
able to assist 41 households, most with children with an average rental assistance of $496.00,
K
which kept low-income families in housing. PPSC's Fair Housing program, which is a
mandatory program since Petaluma is an entitlement jurisdiction, received a total of 975 calls
and inquiries, from both landlords and tenants in FY 17-18. Most of the issues addressed were
tenant/landlord complaints that could have led to an eviction or a fair housing complaint to HUD
without the intervention of PPSC. Without Petaluma's funds, PPSC would have to reduce access
to those services for the residents that need those services to keep them in their housing and
prevent homelessness.
COTS receives funds for the Mary Isaak Center to provide shelter for the homeless population.
COTS annually provides shelter and services to over 500 homeless people. By reducing funds to
the COTS programs, there will be more homeless people out on the streets of Petaluma, which
will impact other City resources, such as safety responses required.
HOME Funds (Balance - $750,000 as of 6/30/19)
There is a balance in the HOME Funds Account of $750,000 as of 12/31/2018. This fund
accumulates Excess Cash from affordable housing properties that have a HOME loan. These
City funds can only be used for construction of affordable housing, which is an eligible activity
for HOME funds. Housing service programs are not eligible for these funds.
Commercial Linkage Fund (Balance $1,291,125 as of 6/30/19)
The Commercial Linkage Housing Fund was established for non-residential developments to pay
a fee for the workforce who cannot afford to live in the city where their job is located. This fund
is specifically for workforce housing projects. The City allocates approximately $50,000
annually to Housing Land Trust of Sonoma County to administer the First Time Homebuyer
program.
s] W I 1131MI1_ 1\ 1 1\
Listed below are several options available for the City Council to consider.
Approve the request for the full amount and direct that funds be taken from the In- Lieu
Fund balance, or from a combination of In -Lieu and HOME funds.
2. Approve funding support in an amount less than the full request, which could include
$750,000 from HOME Funds.
3. Recommend that PEP delay the project until sufficient funding from non -City sources has
been identified and committed. If this alternative is chosen, the City can amend the
Development Disposition and Loan Agreement to allow for an extension of the
construction and financing deadlines.
4. Utilize the $1,700,000 of restricted funds that are in the In -Lieu Housing Fund that have
been requested to be returned to the Successor Agency per the State Controllers report
dated February 20, 2015. This alternative will need to be further vetted by the City
Attorney's Office concerning whether City commitment of the funds may entail City
liability. Staff is continuing to research this alternative.
13 NEVIN PER N 04
Additional City funding for this project will not be expended until close of escrow and the
development begins construction. Funding options and impacts of each are noted below:
Option #l:
a) Paving the total request from the In -Lieu Housing fund - If the City funded the full
amount of PEP's request from the In -Lieu Housing fund, the balance would not cover
funding of any nonprofits' programs in FY 19-20. There is no anticipated revenue
from in lieu fees over the next 2-3 years as the projects in the pipeline are not under
construction. The balance of $358,525 would be allocated to funding administrative
costs of $112,000 to pay for salaries, benefits and intragovernmental charges for over
the next three years.
Impact — No housing programs would be funded over the next 2-3 years.
b) Paving the request from a combination of In Lieu Housing fund and the HOME fund —
By utilizing the $750,000 of HOME funds and $750,000 of the In -Lieu Housing fund,
the HOME fund balance would be zero and no programs would be impacted; by
allocating an additional $750,000 from the In -Lieu Housing fund, this would leave a
balance of $1,108,525 which would cover the annual allocation of $325,000 for housing
programs and administrative costs over a three year period.
Impact — Housing programs could be funded at their current level for 2-3 years. Itis
anticipated that some in lieu fees will be paid by FY 2022 if construction of projects in
the pipeline begins soon.
Option #2
Approve an amount less than the full request, utilizing the $750,000 of HOME funds — As in 1(b)
above the impacts of using HOME funds would be zero. If the In -Lieu Housing funds were used
in an amount less than $750,000, than the impact to that fund would be reduced and the balance
would be greater than $1,108,525. A reserve could be built up to anticipate future unexpected
expenditures.
Impact — If ', funding is approved at less than the full request and HOME .funds are
utilized, housing programs could be funded at their current level and a reserve could be
built up in the In -Lieu Housing fund.
Option #3
Recommend that PEP delav the project until sufficient funding from non -city sources has been
identified and committed — If Council chose this option, the project would be delayed
approximately 9-12 months depending on the non -city funding that was chosen to fill the gap.
According to the Department of Housing & Community Development's schedule of funding
availability, the following are proposed to be scheduled within the coming year: 1) HOME
Partnership Program (HOME) application due September, 2019; 2) Veterans Housing &
Homeless Prevention Program (VHHP) Notice of Funding Availability is due out in August
2019 with the application due in October, 2019; 3) Multifamily Housing Program (MHP)
applications are due June 2019 with another round of funding proposed in October 2019.
0
Impact — Housing programs could be, funded at their current level if the 951 PBS
project had no funding gap utilizing the non -City funding sources. However, choosing
this option could impact PEP's ability to submit a strong application and the funding
for the financial gap could still be needed after non -City funding has been committed.
Option #4
Utilize the $1,700,000 of restricted funds that are currently in the In -Lieu Housing fund that have
been requested to be returned to the Successor A,2encv — In 2008, the City authorized the
provision of $2.5 million to assist in the acquisition of a site for development of Vintage Chateau
II, an affordable senior housing project. The foregoing assistance was provided via an interfund
loan from the City's Housing In -Lieu Impact Fee Fund to the Redevelopment Agency's Low and
Moderate -Income Housing Fund. Before it was dissolved on February 1, 2012, the
Redevelopment Agency made three installment payinents to the City toward repayment of the
Loan and replenishment of the City's Housing In -Lieu Impact Fee Fund totaling $1,700,000 in
the aggregate: $400,000 on June 30, 2011, $200,000 on December 31, 2011, and $1,100,000 on
January 31, 2012. The State Controllers Office determined any transfers made after January,
2011 were unallowable and needed to be returned to the Successor Agency. Those funds were
not returned and have been sitting in the In -Lieu Housing fund.
Impact - If the City successfully negotiates, for a return of these, fees, the, funding could
be used to build affordable housing and could be used on the PEP Project.
RECOMMENDATION
To fulfill the 2017-2018 goal of the City Council to promote and implement programs to
increase affordable housing, staff is recommending Option lb above for the additional funding
that is needed for the PEP project. A letter of commitment can be provided to PEP to show that
Petaluma is supporting this project with additional funding.
ATTACHMENTS
Proforma for 951 PBS
2. Breakdown of cost of construction on River City Apartments
3. Midstate Construction letter to PEP
I BU N BV N BVV N B>_
25 ,187 ,727
18 ,475 ,402
73.35%
1 211!2019
111!2021
4/1C'021
7/1/2021
10/1/1-021
18,475,402
50,000
55,000
34,641
22,500
18,475
6,466
2,771
30,000
30,000
18,475
268,330
ATTACHMENT #1
2126x019 2.23 PM
31
PEP- River City Semor- 4%MHP + Sec 8
BASED ON DRAFT MHP G!11DELINES1/11119
L BL M BM I
BN ] Bu
N
BP BO
M BR N
BS BT
3
4
5 S1011P1:ES 1F FUNDS
AMCiLINT TERMS
6
7 First Mortgage - supported by tenant rents and Section 8
1 921 ,500 30 yr amert115 yr term
6 00%
8 City of Petaluma
1,500,000 55 yr term
Residual Receipts
000%
q City of Petaluma (Land Loan)
1,300,000 55 yr term
Residual Receipts
000%
10 C Ity of Petaluma
110,000 55 yr term
Residual Receipts
000%
11 MHP (GAP Source)
10,329,197 55 yr term
Residual Receipts
300%
simple 1-1I1, 1 91%
12 Sponsor Loan/HEAP
1,000,000 55 yr term
Residual Receipts
000%
13 AHP
1,060,000
0.00%
14 C onstruction Loan
18,475,402
19
month term
5 75go
15 Deferred developer fee
289,711
000%
16 General Partner
600,790
17 Limped Partner r 99 99%
9,113,424
0.900 FED cents/dollar
18 TOTALSC1LIRC'ES
45,720,024
., .....
19 P-.T®C
27,244,622
20
0
BASIS FOR BASIS FOR PV CREDIT
Es:PENSEDI
NON 50% test
21 USES OF FUNDS
T1-1TALC-1ST DEPRECIABLE
4%C PEE, IT
AMCiRTIZED DEPRECIABLE Basis +land
22 Land
1,300,000
1,000,000 bond financing
23 Demolition /iemedlatlon
65,000
65,000
24 Legal &C losing C ostsl carrying costs
75,000
75,000
26 Ciff-Site Improvements- basis eligible
35,000
35,000
35,000
26 New Construction - INCL! ICiES SITEWCiRk& UTILITIES
14,700,156
14,700,156
14,700,156
27 Contractorgeneral requirements/ overheadlproflt 11 34%
1,666998
1,666998
1,666998
28 = ontractor bond and insurance 1.38%
202,862
202,862
202,862
COSTS OF BOND ISSUANCE
2Q PV system
350,000
350,000
350,000
350,000
0
30 Personal Property In Construction Contract NEED
0
0
0
Bond Counsel
31 Furniture Purchased by Ciwner
50,000
50,000
50,000
Banti Counsel
32 - onstructlon contingency 5%
846,001
846,001
846,001
17,870
Issuer Fee r 18 75bp
33 Impact Fees (net ofwaived fees)
822,087
822,087
822,087
Issuer app/legal
34 Permltsand utllltyhookups
92,878
92,878
92,878
0 Issuer monitor during const
35 Architecture
650,000
650,000
650,000
13,730
rDLA(-
36 Survey, engineering, testing
212,000
212,000
212,000
4,478
CE, IAC
37 Security During 1,Dnstrudlan
35,000
35,000
35,000
739
Attorney
38 Environmental & Geotech
20,000
20,000
20,000
Title costs
39 Soft cost contingency
150,000
150,000
150,000
Const loan fee r 1 %
40 - ost of Issuance
268,330
18,475
18,475
0
249,854
TOTAL
41 Construction Loan Fees CGI
0
0
0
0
0
42 Perm loan fee 1 %
19,215
0
0
19x15
43 Predv loan feesllnterest and other financing costs
122,500
0
0
122,500
44 Ta :es during construction
10,000
10,000
10,000
45 C onstructlon Loan Interest during construction - 13 months
632.975
632,975
632,975
13,370
46 Construction loan interest post construction - 6 months
531,168
531 ,168
4 C onstructmn lender legal and costs
90,000
90,000
90,000
5! HCLiLILt
48 Course of Construction Insurance
50,000
50,000
50,000
Construction Start
49 Title - Construction Loan Closing CCiI
0
0
0
Construction Completion
50 ;Appraisal
10,500
10,500
10,500
100% Occupancy
51 Ta : C redlt Allocation C ommlttee Fees
33,857
33,857
0 Perm C onversmn
52 Legal Fees - Cirganizzation
40,000
40j]00
Form 8609
53 Legal Fees- Construction Loan Closing
0
0
0
54 Legal - Syndication
45,000
45,000
55 Legal - Permanent loan closing
40,000
40,000
T Title - Permanent loan closing
12,500
12500
57 Market Study
9,500
9,500
58 Prevailing wage monitoring
7,000
27,000
7,000
59 Consultant- Syndication
55,000
55,000
60 Marketing
75,000
75,000
61 Project Audit
20,000
20,000
62 Operating Reserves- 6 mo operations
306,529
306,529
63 Sec 8 Transition Reserve
421,776
421,776
64 Development Fee
3,100,790
3,100,790
3,100,790
65,496
0
65 ConsultantrProcessrngAgent
50,000
50,000
50,000
66 RepaymentofI- onstructlonLoan
18,475,40
18,475,402
67 TC1TALPRDJEli Tr=C1STS
1
45,720,024
23,897,722
23,822,722
465,683, 1,144,094
20,678,208
I BU N BV N BVV N B>_
25 ,187 ,727
18 ,475 ,402
73.35%
1 211!2019
111!2021
4/1C'021
7/1/2021
10/1/1-021
18,475,402
50,000
55,000
34,641
22,500
18,475
6,466
2,771
30,000
30,000
18,475
268,330
ATTACHMENT #1
2126x019 2.23 PM
31
Location: Petaluma
Architect Robert W. Hayes, Architect
415-332-0999
Estimator: Patrick Draeger
DrawingDate January ll.2019
Cost Summary
IOGO GENERAL REQUIREMENTS
2000 SITEWORK
3000 CONCRETE
4000 MASONRY
5000 METALS
6000 WOOD AND PLASTICS
7000 THERMAL AND MOISTURE PROTECTION
8000 DOORS AND WINDOWS
9000 FINISHES
10000 SPECIALTIES
11000 EQUIPMENT
12000 FURNISHINGS
13000 SPECIAL CONSTRUCTION
14000 CONVEYING SYSTEMS
15000 MECHAMCAL
16000 ELECTRICAL
Subtotal
Contingency
3uilder's Risk Insurance
Liability Insurance
Performance Bond
Overhead and Profit
Total Job Cost
Page 1 of 6
River City
951 Petaluma Blvd South
Preliminary Estimate
0.75%
ATTACHMENT #2
Estimate #
19004
Building Area:
46,170 sf
Site Area:
56,992 sf
Estimate Date
March 5, 2019
690,480
1,858,449
759,872
57,700
3,3,59,840
1,491,541
465,857
1,719,613
56,500
145,750
19,766
2,550,893
1,864,376
15,040,636
752,032
118,445
84.001
959,707
16,954,821
MIDSTA TE CONSTRUCTION
N
Division No. Description
Quantity
Unit Price
Totals
1000 GENERAL REQUIREMENTS
IA General Conditions
16
mo
43,155
690,480
2000 SNEWORK
2A Sitework
-
Building Demolition
9,650
sf
7.00
67,550
Site Demoltion
56,992
sf
0.70
39,894
Erosion Control
56,992
sf
0.25
14,248
EC Maintenance
56,992
sf
0.15
8,549
Temporary Fence
1,257
It
5,00
6,283
Tree protection fencing
I
Is
1,200.00
1,200
Temporary Construction Entrances
2
ea
3,000,00
61000
Construction Staking
I
Is
18,000.00
18,000
Rough Grading
56,992
sf
0.75
42,744
Offhoul excess soil
2,000
cy
40.00
80,000
Budding Pad / Lime treat.5% and 1B" depit
19,327
sf
2.00
38,654
Lime treat parking and pavement areas 12" deptl°
18,662
st
1.25
23,328
Remove lime soils from planters
I
Is
25,00OZO
25,0W
Backfill planters with stockpile soils / finish grade
I
is
7=00
7,000
Storm Drain piping and structures
56,992
sf
1.50
85,488
Bioretention basins
4,000
sf
35.00
140,000
Sewer piping and structures
56,992
sf
0.75
42,744
Domestic and fire water
56,992
sf
1.50
85,488
Joint Trench
I
Is
150,000.00
150,000
Asphalt paving
18,662
sf
4,50
83,979
Permeable pavers I entrance drive
2,018
sf
2100
44,396
Permeable Pavers / Community Bldg Pofic
602
sf
20,00
12,040
Rock base under perm pavers
2,620
sf
2.00
5,240
Rock under concrete walks
5,300
sf
2,00
10,600
Rock under decomposed granite
1,034
sf
2,00
1068
Site concrete
-
Curb and gutttei
1,577
If
40,00
63,080
Bioretension deep curbs
650
If
20.00
13,1100
Walks
5,300
sf
15,00
79,500
Community Pati-
1,422
sf
15.00
21,330
Trash Enclosure footings and slab
I
If
8,000.00
8,000
Landscape and Irrigation
12,660
sf
16.00
202,560
Fences
-
Dog run fence
110
if
175.00
19.250
Com Bldg patio fence
so
If
175.00
8.750
Community path fence
133
If
175.00
23,283
Vegetable Garden Planters
3
ea
21300D0
6.900
Dog Run Decomposed Granite
734
sf
6.00
4,404
Vegetable Gorden Planters / Decomposed Granite
300
sf
600
1,800
Parking lot striping and signs
I
Is
6,50000
6,500
Romp rails
7
Is
2,500.00
2,500
Bike racks
7
ea
300.00
2,100
Community Gazebc
I
Is
$1000,00
5,000
Foundation Piles
I
Is
350,000,00
350,000
3000 CONCRETE
3A Structural Concrete Including Reinforcing Steel
PT Slab Founclatior
19,000
sf
36.00
684,000
3B Gypsum Concrete
I" Gyperete 28,670 sf 1.60 45,872
Sound mat 12,000 sf 1.75 21,000
Add for 4 mobilization! I Is 9,000.00 9,000
Page 2 of 8 MIDSTATE CONSTRUCTION
Division No, Description
Quanlity
Unit Price
Totals
4000 MASONRY
4A Unit Masonry
CMU
st
26,00
5000 METALS
SA Miscellaneous Steel
Trash Enclosure Gates
3
ea
3.000.00
9,000
Covered parking columns
4
oo
1,100.00
4,400
Trash Area Column!
2
ea
1,100.00
2,200
Storage area columns
I
ea
1,100.00
1,100
16100
58 Stairs and Rciflings;
Stairs and Landings
2
fits
20,500.00
41.000
41,0100
6000 WOOD AND PLASTICS
6A Rough Carpentry
-
Building Framing
46,170
sf
58,00
2.677,860
Siding and Rain Screens 6 See 7C
-
Covered parking root structure
2
cars
3.000.00
6,000
Covered trash area root structure
I
Is
4,500.00
4,500
Storage area root and walls
377
sf
40,00
15,080
Temporary Scaffold
I
Is
90,000.00
90,000
Debris Boxes
I
Is
40,000.00
40,000
2,833,440
68 Interior Wood Trim and Shelving
Apartments
45
ea
3,500D0
157,500
Community Bldg
I
ea
4,500.00
4,500
162,000
6C Cabinets and Countertops
-
Apartments
Cabinets
54
units
3,800Z0
205,200
Cabinet Installation
54
units
1300.00
70,200
Countertops
54
units
1,500.00
81,000
Community Bldg
-
Cabinets
I
ea
6,000,00
6,000
Counter
I
eo
2,000.00
2,000
364,400
7000 THERMAL AND MOISTURE PROTECTION
7A Insulation
Exterior walls / closed cell spray foam
30,000
sf
4.00
120J000
Root
17,520
sf
1.60
28,032
Floor Insulation
28,600
If
1.00
28,600
176,632
711 Roofing
Shingle and TPO Roofing
22,841
sf
6.75
154.177
154,177
7C Siding
-
Plaster, Hardie, Metal
29,754
st
28,00
833,112
833.102
7D Flashing and Sheet Metal
17.570
sf
16.00
281,120
281,120
7E Joint Sealers
Siding joints
30,000
sf
1.55
46,500
46,500
Page 3 of 6
MID" TATE CONSTRUCTION
N
Division No.
Description
Quantity
Unit Price
Totals
8000 DOORS AND WINDOWS
Carpet and LVT
46,170
sf
8A
Doors, Door Frames and Finish Hardware
-
I If
270,000-00
270,000
270,000
8B
Entrances and storefronts
-
Aluminum Storefront / Community Roort
2 pr
71000.00
14,000
90,000
Aluminum Storefront / Group RoorT
I pr
7,000.00
7,000
1.40
Aluminum Storefront / Building I Entrance
I Is
61000.00
6,000
sf
ADA Door Opener at Community RoorT
I ea
61000,00
6,000
33,000
8C
Vinyl Frame Windows
-
I OA Bath Accessories
I Is
162,85714
162,857
21,600
1 OB Toilet Rm Accessories J Community Bldg
2
162.857
9000 FINISHES
9A Drywall and Metal Stud Framing
Metal Framed Soffits 54 ea 2,750.00 148,500
Drywall 184,680 st 5,00 923,400
Exterior Gypsum Sheathing 30,000 sf 2.50 75,000
Tsle Backer Board
1,146,900
98 Tile -
Community Bldg Restroom! 2 eo 4,500,00 9,000
9,000
9C Acoustical -
Community Room and Wellness Ceilinge 397 sf 7,00 2,779
2,779
9D Flooring
-
Carpet and LVT
46,170
sf
6.00
277,020
277,020
9E Painting
High Performance Coatings for Steel
Exterior Painting
30,000
sf
3.00
90,000
Interior Patinfing
138,510
sf
1.40
193,914
Water Repellent Coatings
sf
2.00
283,914
10000 SPECIALTIES
-
I OA Bath Accessories
54
opts
400.00
21,600
1 OB Toilet Rm Accessories J Community Bldg
2
rms
400.00
800
IOC: Mirrors
I
Is
10,000.00
10,000
100 Signs
I
Is
12,000,00
12,000
10E Knox Boxes
3
ea
500-00
1,500
1 OF FEC
I
Is
2,500,00
2,500
I OG Mailboxes
I
Is
81 1 OODO
8,100
56,500
11000 EQUIPMENT
11 A Kitchen Appliances
-
Refrigerator, Micro Hood, Range
55
ea
2,650.00
145,750
145,750
12000 FURNISHINGS
-
12A Window Coverings
I
Is
19,766.00
19,766
Page 4 of 6
10
Division No. Description Quantity Unit Price Totals
19,766
Page 5 of 6 MIDSTATE CONSTRUCTION
Division No. Description Quantity Unit Price Totals
13000 SPECIAL CONSTRUCTION
14000 CONVEYING sySrEMS
15000 MECHANICAL
15A Fire Protection 46,170 sf 5.00 230,850
230,85G
15B Plumbing -
46.170 sf 28,25 1,304,303
1,304,303
15C Hearing. Ventilating, and Air Conditioning JHVAC, -
46,170 sf 22.00 1,075,740
1,015.740
16000 ELECTRICAL
16A Electrical and Fire Alarm 46,170 sf 32,30 1,491,291
168 Temporary Power System 46.170 sf 0.50 23,085
16C Photovoltaic System I Is 350,000.00 350,000
1,864,376
Subtotal
15,040,636
Contingency
752,032
Builder's Risk Insurance
0.00%
-
Liability Insurance
035%
118,445
Performance Bond
0.00%
84,001
Overhead and Profit
959.707
Total Job Cost
16,954,821
Page 6 of 6 MIDSTATE CONSTRUCTION
12
ATTACHMENT #3
Mary Stompe
PEP Housing
951 Petaluma Blvd. South
Petaluma, CA 94952
We would like to add some comments from our perspective on why the costs are
higher than the RS Means MSA data would support for current construction
costs in Sonoma County. Across the entire construction industry, the costs of
labor and materials have been driven sharply upward by several factors.
Regionally, over the past 18 months, we have seen unprecedented increases in
impact of the October 2017 Sonoma County Firestorm and the November 2018
Paradise Fire.
Using six recent and comparable ground -up projects that we are actively building
or are in preconstruction we see that the hard costs are averaging $328 per
square foot. Three of the six do not include prevailing wage requirements. Of
these six 2018 projects that we pulled data from, the following are currently being
built.
Under Construction
Stoddard West Apts, Napa — priced March 2018, $243/sf (almost a year old)
Celestina Garden Apts, Boyes Hot Springs — priced July 2018, $284 /sf
Redwood Grove Apts, Napa — priced Oct 2018, $387 /sf
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Budoets
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Oakmont Senior — budget Aug 2018, $294 /sf
River City — budget Nov 2018, $359/sf
If a specific project is subject to prevailing wages, this increases the project cost
by approximately 20% compared to non -prevailing wage projects. The
referenced under construction projects above are all non -prevailing wage
projects. The three -project average for under construction is $305/sf. Adding
20% for prevailing wage puts them at $366/sf.
13
The reasons for the higher costs are as complex as they are numerous. Federal
import tariffs on foreign materials have increased and continue to expand to
other materials as new import tariffs are implemented. With a disproportionate
amount of raw construction materials coming from China as compared to
domestic production, this trend will only increase as the cost of imported raw
materials increases. The ripple effect reaches to all trades but especially
plumbing and electrical. Metal ores, iron, rubber, and aluminum are all vital
components for these trades and, as a result, the overall price from the
subcontractors has increased. The U.S. has already imposed tariffs on $253
billion of Chinese goods with plans for an additional 10-25% on all remaining
imports by March I st. This means that not only will raw goods have an additional
duty but manufactured goods as well.
The labor shortage in this area is even more dire. The huge regional amount of
all trades. The labor supply has never returned to its pre -recession levels and
tougher immigration restrictions and an improving building market outside of the
U.S. has created a lack of qualified labor that is readily available for us now.
Consequently, the lower supply has created a significant spike in the cost of
Additionally, the cost of labor and materials has seen a significant increase in
Sonoma County, as a direct result of the 2017 and 2018 wildfires. With rebuilding.,
currently well underway, the direct hard costs of labor and materials is being
driven up even further by the shortage of those resources. Specifically, steel and
concrete have jumped dramatically in the last 12 months. The cost of these
critical building supplies is being driven by the increased demand as it relates to
the fire rebuilds; all without the corresponding increase in supply.
We believe that if you look at the RS Means MSA benchmark for Santa Rosa
multi-family/apartment costs of $184 per square foot and factor in across the
board increases as high as 50% for materials; and if prevailing wages are
required which adds an additional 20%, the resulting valuation of new
construction projects in the local area is much higher.
Let us know if we can assist with any additional information.
MIDSTATE CONSTRUCTION
'::�' I na6'�
N &6w(
Monica Soiland Nelson
Vice President, Marketing and Business Development
14