2. Resolution 5372 - Authorize Grant Application and Approve Memorandum of Understanding - Northwest Montana Community Land Trust201 1st Avenue East
Kalispell, MT 59901
406.758.7740
Fax: 406.758.7758
City of Kalispell • www.kalispell.com
Office of Community & Economic Development
MEMORANDUM
To: The Honorable Mayor Kennedy and Kalispell, Ci y Council Members
CC: Myrt Webb, Interim City Manager
FROM: Katharine Thompson, Community Development Manager
RE: Memorandum of Understanding between Community Action Partnership
of Northwest Montana and the City of Kalispell on Community Land
Trust and Neighborhood Stabilization Program
DATE: June 10, 2009
Attached to this memo please find a copy of the Memorandum of Understanding (MOU)
between Community Action Partnership (CAP) of Northwest Montana and the City of
Kalispell on Community Land Trust (CLT) and Neighborhood Stabilization Program
(NSP). On June 1, 2009 a Letter of Intent was distributed to the Mayor and Council in
preparation for this submission.
BACKGROUND:
The City of Kalispell has identified "affordable housing to meet the needs of low and moderate -
income residents" as a policy within its Kalispell Growth Policy 2020.
At the City Council work session on May 26 Community and Economic Development proposed a
partnership between the City of Kalispell and CAP to pursue NSP funds for the purpose of
purchasing foreclosed homes to be placed in a yet to be formed CLT. Council asked that the
Department come back with a MOU for Council to consider. This memo is specific to the
Memorandum of Understanding with Community Action Partnership. The MOU is necessary to
allow the City to pursue Neighborhood Stabilization Program funding which is being awarded on
a first come, first serve basis. Further, the MOU allows the creation of the community land trust
through the State of Montana for any homes purchased with NSP grant dollars.
FISCAL IMPACT:
The Community and Economic Development Department has set aside $20,000 for the purpose
of implementing a community land trust model to address workforce and affordable housing in
Kalispell. To date, $2,000 has been expended to determine the feasibility of the project through
consultation with Michael Brown of Burlington Associates. The Community and Economic
Development Department proposes to commit the remaining $18,000 through the MOU to CAP.
ACTION REQUIRED:
Council approval of Memorandum of Understanding and Resolution supporting application for
Neighborhood Stabilization Program.
I;, W1119IJI c��.i.r��c►ya
WHEREAS, the City of Kalispell is applying to the Montana Department of Commerce for a Community
Development Block Grant for Neighborhood Stabilization Funds in partnership with
Community Action Partnership for the purpose of purchasing foreclosed homes to be placed
in a yet to be formed Community Land Trust; and
WHEREAS, on December 2, 2008, the City of Kalispell and Community Action Partnership conducted a
noticed public meeting in conformance with CDBG requirements to obtain the views of
citizens regarding the submittal of this grant application at which meeting approximately
ten individuals spoke in favor of submitting for the grant and no one spoke in opposition;
and
WHEREAS, Community Action Partnership and the City of Kalispell wish to enter into a Memorandum
of Understanding in order to allow the city to pursue Neighborhood Stabilization Funds and
create a Community Land Trust through the State of Montana; and
WHEREAS, the City of Kalispell has the legal jurisdiction and authority to provide assistance to
Community Action Partnership.
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF KALISPELL AS
FOLLOWS:
SECTION I. That the City of Kalispell agrees to conform to the regulations, statutes, terms and
conditions described in the CDBG Certifications for Application.
SECTION II. That the City Manager is authorized to submit on behalf of the City of Kalispell, the
CDBG Grant to the Montana Department of Commerce and to provide such other
additional information as may be required.
SECTION III. That the Memorandum of Understanding between Community Action Partnership
of Northwest Montana and the City of Kalispell is hereby approved.
PASSED AND APPROVED BY THE CITY COUNCIL AND SIGNED BY THE MAYOR OF THE
CITY OF KALISPELL THIS 15TH DAY OF JUNE, 2009.
ATTEST:
Theresa White
City Clerk
Pamela B. Kennedy
Mayor
MEMORANDUM OF UNDERSTANDING
BETWEEN THE
COMMUNITY ACTION PARTNERSHIP OF NORTHWEST MONTANA
AND THE
CITY OF KALISPELL, MONTANA
This Memorandum of Understanding ("MOU") is entered into by and between the
COMMUNITY ACTION PARTNERSHIP OF NORTHWEST MONTANA, ("CAP"),
and the City of Kalispell, Montana ("The City") for the purpose of assisting The City
with their Community Development Block Grant (CDBG) application for Neighborhood
Stabilization Program (NSP) funds and to establish a Northwest Montana Community
Land Trust (CLT). CAP will administer the NSP and the CLT. Accordingly, CAP and
The City do hereby agree as follows:
►/_
This MOU is effective July 1, 2009 and shall continue until June 30, 2011.
2. PURPOSE
CAP will assist The City in the application by assigning the Housing Director and Grant -
Writers (herein after called "Staff") the development, writing and management functions
for both NSP and ultimately CLT. (see Attachment A)
3. CITY RESPONSIBILITIES
The City will provide any and all support necessary to supplement the CAP staff working
on the CDBG NSP application and the formation of the Northwest Montana CLT.
The City agrees to provide CAP with the data and other information CAP needs to fulfill
the grant requirements of the funder. The City's reporting requirements are subject to the
confidentiality limitations contained in this MOU.
The City will provide $18,000 to CAP to help fund the aforementioned activities. The
City will provide payment to CAP within 30 days of the date of the following
benchmarks:
1. At submission of NSP application to MDOC - $9,000 due to CAP
2. At submission of CLT formative documents to State-$9,000 due to CAP
4. CAP RESPONSIBILITIES
CAP will provide the services regarding NSP and CLT detailed in Attachment A. CAP
will provide secure, confidential working space for the grant -writing and CLT staff for
the term of this MOU.
CAP will provide $24,000 plus in -kind, soft -costs to help fund the aforementioned
activities.
CAP will meet at least quarterly with The City to discuss the progress and any issues
regarding this MOU.
5. PROVISION OF SERVICES
CAP will maintain total and complete control over CAP's operation and the services
provided by the CAP staff.
6. EMPLOYMENT STATUS
It is agreed that the CAP staff are employees of CAP and not part of The City staff.
This MOU is by and between CAP and The City and is not intended, and shall not be
construed, to create the relationship of agent, servant, employee, partnership, joint
venture, or association, as between CAP and The City or its staff.
The City shall have no liability or responsibility for the payment of any salaries, wages,
unemployment benefits, disability benefits, federal, state, or local taxes or other
compensation, benefits, or taxes for the CAP staff.
7. INDEMNIFICATION
CAP agrees to indemnify, defend, and hold harmless The City, and its employees and
agents, from and against any and all liability, including but not limited to defense costs
and reasonable attorney's fees, arising from or connected with claims, lawsuits for
damages, and/or Worker's Compensation benefits relating to CAP operation or services,
which result from bodily injury, death, personal injury, and/or property damage
(including damage to CAP property). CAP shall not be obligated to indemnify for
liability and expense arising from an act of negligence of The City.
The City agrees to indemnify, defend, and hold harmless CAP, and its employees and
agents, from and against any and all liability, including but not limited to defense costs
and reasonable attorney's fees, arising from or connected with claims, lawsuits for
damages, and/or Worker's Compensation benefits relating to The City while assigned to
this collaborative project, which result from bodily injury, death, personal injury, and/or
property damage (including damage to city property). The City shall not be obligated to
Page 2 of 3
indemnify for liability and expense arising from an act of negligence of CAP or CAP
staff.
S. INSURANCE
Without limiting CAP's indemnification and other obligations above, CAP shall provide
and maintain at its own expense, general liability insurance covering the hazards of
premises/operations, property damage and personal injury with a combined single limit of
not less than one million dollars ($1,000,000.00) per occurrence and $3,000,000.00
aggregate and CAP shall provide proof of this insurance coverage to The City upon
request.
9. NOTICES
All notices under this MOU shall be in writing and shall be hand -delivered with signed
receipt or mailed by first-class registered or certified U.S. mail, postage prepaid,
addressed to the parties as follows:
To CAP:
Douglas D. Rauthe, Executive Director
Community Action Partnership
of Northwest Montana
P.O. Box 8300
Kalispell, MT 59904-1300
10. TERMINATION
TO: The City:
City Manager
City of Kalispell
P.O. Box 1997
Kalispell, MT 59903
Either party may terminate this MOU for any reason by providing 30-days written notice
to the other party.
Dated this
day of , 2009.
COMMUNITY ACTION PARTNERSHIP CITY OF KALISPELL
OF NORTHWEST MONTANA
Douglas D. Rauthe
Executive Director
Myrt Webb
Interim City Manager
Page 3 of 3
Benchmarks
Activity/Task
Responsible Entity
Completion Date
Informational meeting with
CAP/City Staff
5/14/09
City Staff
City Council Work Session
City Council/CAP/City
5/26/09
Staff
City Council Approval for
City Council
6/15/09
CLT/NSP application
submission and MOU
w/CAP
Final Draft of NSP
CAP/City Staff
7/15/09
Application to City for
review
Submission of NSP
CAP
7/22/09
application to MDOC
Submission of CLT legal
CAP
8/09
documents to State of
Montana
NSP Funding Award
MDOC
?
NSP funds obligated
MDOC
9/19/10
NSP funds expended
MDOC
9/19/14
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Northwest Montana CLT Operating Budget
16-demosI
A. Project Build -out Assumptions
Year 1
Year 2
Year 3
1 Year 4
1 Year 5
Year 6
Year 7
Year 8
Year 9
Year 10
Totals
4
6
d
6
d
d
d
d
6
8
cumulative unit totals:
B. Program Expenses
0 6
12
"'
24
30j
361
421
48
54
Personnel cola: _ 3.0% JAnnualizedi 2009
1 2010
1 20"
2012
1 2013
2014
1 2015 1
2016
1 2017
2018
Salarles Sala let Year)
Pro rare Director _ _ 4i,000
0
10,558
13.049
13.441
13.844
14,259
_ 14,687
15,127
18,178
18.723
FTE:
0% 26X 30%
30%
30% 30%
30%
30%
36% 36
°9 Develo ment Coordinator 1 38,000
0
0
0
0
0
0
0
0
0
0
F1'E:
0% 0% 0%
0%
0%
0%
0%
0%
0% 0%
m Homebu erlHomeowner Services Coordin 32_,OWj
0
0
0
6,993
7,203
9.274
11,463
11,807
14,188
14,613
FTE:
0% 0%
0%
20%
20%
26%
30%
30%
35% 36
"IlMarkeling Coordinator 32,000
0
0
0
0
0
0
0
0
4,054
4.175
FrE:
0%
0%
0%
0%
0%
0%
0%
0%
10%
1
"I[Q2amunity Outreach Coordinator 32,000
o
0
0
o
0
0
0
0
4,054
4.175
Frill:
0%
0%
D%
0%
0%
0%
0%
0%
10%
1
to Administrative Coordinator 25,OOd
0
6,438
6,631
6,830
7,034
7,245
8.955
7,667
9,501
9,786
FTE:
0%
25%
26%
26%
251%
25%
30%
25%
30%
30%
1,1 CAP ata"foiher ex nsea sea am,whod
24.000
0%
0%
0%
Tots! Salaries
16,995
19,680
2T,264
28,081
30,779
35,105
34,621
49,974
51,473
Number of FTFs
0A0
0.50
0.56
0.76
0.75
0.80
0.90
0.85
1,20
1.20
Benefits 25Ya of total saianes
4,249
4,920
6,816
7,020
7.695
_ 8,776
6655
12,494
12,866
Total Personnel Costs
0
21,244
24,600
< 100
34,079
a 6.wo
35,102
a
38,473
6,412
43,881
a 7,354 5
43,276
3
62,468
e W.,
64,342
Administration &Overhead 35^/, of total payroll
7,435
8,610
11.928
12,286
13,466
15358
15,147
21,864
22,520
TOTAL PROGRAM EXPENSES
24,000
28,679
33,209
46,007
47,387
51,939
59,240
58,423
B4,331
86,861
Start-up FFE7Consultanls7legal fees (see aftached)
2A,000
7,500
Reserve Funds
operating Reserve
0
51000
5,000
5,000
5,000
8,0001
5,000
5,000
5,000
5,000
Capital Asset Fund
0
6,000
6,0011
0.000
81000
8.0001
8,000
0,000
8,000
TOTAL ANNUAL OPERATING EXPENSES
48,00D
47,179
44,209
57,007
58,387
62,939
70,240
69.423
95,33T
g97,86.1
'C. Program -Generated Revenue
Developer Fees from NSP Funds
2.00°'0 of value of edCh Unit developed
0
15,600
16,224
16,673
17,548
0
0
0
0
0r
Marketing Fees
1.O�a of value of each unit developed
0
7,800
8.112
8.436
8,774
9,125
9,490
9,869
10,264
10.675
Ground Leas_ a Fees GLF)
525 InW monthly GLF
0
900
1,800
4,050
5.400
6,750
8,100
9.450
10,800
12.150
Lease Re -issuance Fees
37 500 Lease re -issuance Fee
0
0
5,400
7,200
9,000
10,800
12.600
14.400
16,200
Memhershi Ques xmembers,
0
25
50
50
_ 60
50
60
60
75
75
335 Annual membership dues
0
875
1,750
1,750
2,100
2,100
2,100
2,100
2.625
275
Corporate Donors for operations) x
0.00
1
1
2
3
3
3 1
3
3
4
55000 Annual ($2,Cooalready rec'd/2009j
6,000
5.000
5.000
10.000
15,000
15,000
15,000
15,D00
15,000
20,000
Other So fora erafion6} x
0
525,000 'Portion of Mil from CVKaiispah
0
12.500
12,500
25.000
25.000
25,000
25,000
25,000
25,000
25,000
$501000 Portion of Mil from FH Co.
12,500
25,000
50,000
50,000
50.000
50.000
50.000
50,000
$25,000 Other gc A support (WF, CF. Lincoln Co,
etc.
12,500
12,500
16.000
20,000
20.000
22.500
25,000
$25,000 NSP Administration Funding
25,000
25.000
25,000
25.000
0
0
0
0
0
$25,000 Other grants not yet identified
25,000
15,000
15,000
15,000
0
0
Start up molls from City of Kalispell #1
1
_ 0
01
01
o 1
01
0 1
01
0
0
518 000 One Tim.
18,000
0
0
0
0
0
0
0
0
0
HOME CHDO Develo r Fee (NMHR) x
t I
D
0
01
01
0j,
0 1
0
0
0
$24,000 one Time
24,0D0
0
0
0
0
0
0
0
a
0
TOTAL PROGRAM REVENUE
0 (4,504) 1,177 14,502 22,634 4,035 250 4,597 (17.242) (11,211)
0 (4,504) (3,328) 11,175 33,809 37,845 38,095 42,691 25,449 14,238
CLT Budgel.xds ® Burlington Associates in Community Development
6110/2009 2:14 PM From Lexington Community Land Trust