HOMELESSNESS AND POVERTY COMMITTEE REPORT relative to the comprehensive recommendations regarding changes to the permanent supportive housing process and funding structure to enable a more expedited delivery of homeless housing.

Recommendation for Council action, pursuant to Motion (Harris-Dawson - Englander - Bonin):

REQUEST the Proposition HHH Citizens Oversight Committee, with the assistance of the Chief Legislative Analyst (CLA), City Administrative Officer (CAO), and the Housing and Community Investment Department to make comprehensive recommendations to the Homelessness and Poverty Committee regarding changes to the permanent supportive housing process and funding structure to enable a more expedited delivery of homeless housing.
       

Fiscal Impact Statement:  Neither the CAO nor the CLA has completed a financial analysis of this report.

Community Impact Statement:  None submitted.

ENVIRONMENTAL IMPACT REPORT (EIR) and COMMUNICATION FROM THE CHIEF LEGISLATIVE ANALYST (CLA) relative to the sale of City-owned properties to Lightstone DTLA, LLC, and related Hotel Development Incentive Agreements (HDIA).

Recommendations for Council action, SUBJECT TO THE APPROVAL OF THE MAYOR:

1. FIND, based on the independent judgment of the decision-maker, after consideration of the whole of the administrative record, the project was assessed in the Fig and Pico Conference Center Hotels EIR No. ENV-2016-2594-EIR and Errata, SCH No. 2016121063, certified on February 9, 2018; and, pursuant to California Environmental Quality Act Guidelines, Section Nos. 15162 and 15164, no subsequent EIR or addendum is required for approval of the project.
   
   
2. AUTHORIZE the Mayor to execute the Fig and Pico Conference Center HDIA, Attachments A and B of the CLA report dated April 23, 2018, attached to the Council file, between the City and Lightstone DTLA, LLC to provide, as a conditional obligation, financial support of up to $67.4 million net present value (NPV).
   
   
3. AUTHORIZE the General Manager, Department of General Services, to execute the Purchase and Sale Agreement and Joint Escrow Instructions by and between the City and Lightstone DTLA, LLC relating to City Surplus Property located at the northeast corner of South Figueroa Street and Pico Boulevard, Attachment C of the CLA report.
   
   
4. APPROVE the Government Code Section No. 53083 report, Attachment D of the CLA report, for the Fig and Pico Conference Center Hotels HDIA; and, INSTRUCT the Economic and Workforce Development Department to provide periodic reporting on this project as required under Section No. 53083 of the Government Code, with assistance of the City Administrative Officer, CLA, Office of Finance, and other departments as necessary.
   
   
5. REQUEST the City Attorney to prepare and present an Ordinance to establish a Special Fund for the purpose of receiving funds and making payments to meet the conditional and administrative obligations associated with the Fig and Pico Conference Center Hotels HDIA, to be known as the Fig and Pico Conference Center Hotels Trust Fund.

Fiscal Impact Statement: The CLA reports that approval of these HDIAs and the other associated documents will have a positive impact on the City’s General Fund. This agreement is expected to result in the development of three hotels with a total of 1,130 rooms that would generate $158 million NPV ($488.2 million nominal) in new City tax revenues over 25 years upon opening and operation of the hotels. Hotel incentive assistance of $67.4 million NPV ($103.4 million nominal) would be provided to the Developer, while the General Fund receives $90.6 million ($384.8 million nominal).

Community Impact Statement: None submitted.

(Economic Development Committee waived consideration of the above matter)

COMMUNICATION FROM THE CITY ADMINISTRATIVE OFFICER (CAO) relative to an Addendum to the Fourth Construction Projects Report (CPR) for Fiscal Year (FY) 2017-18 and recommended funding adjustments.

Recommendations for Council action, SUBJECT TO THE APPROVAL OF THE MAYOR:

1. TRANSFER $13,874,659 between accounts within departments and funds as specified in the Attachment accompanying the CAO report dated May 15, 2018.
   
   
2. TRANSFER $270,000 between departments and funds as specified in the Attachment accompanying the CAO report dated May 15, 2018.
   
   
3. RESCIND Recommendation No. 8 in the Fourth CPR dated April 27, 2018, as the recommended MICLA reauthorizations will be addressed in a future report.
   
   
4. RESCIND the prior action to allocate $3 million in Proposition K assessment funds for the Algin Sutton pool project, as authorized by Council as part of the Proposition K Mid-year Reprogramming report (Council file No. 17-0113-S1; Recommendation No. 3, Attachment 2) to eliminate an over-commitment of this funding source and authorize the use of $3 million in Proposition K interest monies as a replacement source of funds.
   
   
5. AUTHORIZE the Controller to:
   
   
   1. Reverse the prior commitment of $3 million in Proposition K assessment funds for the Align Sutton pool project (Council file No. 17-0113-S1).
      
      
   2. Transfer and appropriate $3 million in Proposition K interest earnings (Fund No. 43K, Revenue Code No. 4403) to a new account within the Proposition K Projects Fund No. 43K entitled Algin Sutton and increase the cash balance within the same Fund.
      
      
6. AUTHORIZE the CAO to make any necessary technical corrections to these transactions consistent with this action.
   
   

Fiscal Impact Statement: The CAO reports that there is no immediate impact on the General Fund as a result of this action. Any additional costs of operations and maintenance for new facilities would be addressed following project completion as part of the City’s annual budget adoption process.

Community Impact Statement: None submitted.

(Information, Technology, and General Services and Budget and Finance Committees waived consideration of the above matter)

ATTEST: Holly L. Wolcott, CITY CLERK

By:

Council Clerk                                            PRESIDENT OF THE CITY COUNCIL