6. Flathead Industries Interlocal AgreementI 0 f
Incorporated 1892
Planning, Economic & 248 Third Avenue East
Community Development Department (406) 758-7740
P.O. Box 1997 MEMORANDUM (406) 758-7739 (office fax)
Kalispell, MT 59903-1997 (406) 758-7758 (City Hall fax)
DATE: March 10,1995
TO: Larry Gallagher, PECDD Director
FROM: Susan Moyer, Housing Manager
Planning, Economic and Community Development
SUBJECT: Westside Living -- Flathead Industries for the Handicapped, Inc..
In 1993 the City Council authorized pursuing $400,000 in Community Development Block
Grant (CDBG) funds to leverage with $200,000 of Tax Increment Funds, and a special Multi -
Family Pilot Program fund from Montana Board of Housing to create a 9 bedroom group
home and 16 units of low income rentals for physically and/or mentally disabled individuals.
The entire project was estimated to cost $1,260,000; and because of the City's commitment, the
Federal Home Loan Bank of Seattle awarded a $100,000 grant to the project.
Due to the lack of site control, the grant was not funded and the project was carried forward
into the 1994 fiscal year goals.
In 1994, site control was acquired on two lots located within the redevelopment area and close
to the new group home on the west side. These lots would allow for the construction of 7 of
the anticipated 16 units. During the budgetary process, City Council authorized $100,000 for
the acquisition of these two lots and the relocation assistance required for the two families
residing there. Additionally, $100,000 was allocated to be used for acquisition and relocation of
tenants at a second site to be found for the remaining units. It was anticipated the second site
would also be within the redevelopment area. The additional relocation activities would be
the match when seeking a $400,000 1994 HOME grant for brick and mortar construction at both
sites. The City applied and won the HOME grant in the name of Flathead County.
Prior to the ranking of the 1994 HOME grant, a second site outside the redevelopment area was
found which would accommodate three duplexes and provide thirteen of the originally
intended 16 units. This site was purchased by FIFTH with funds received through the Federal
Home Loan Bank of Seattle grant. Due to the fact these lots are outside the redevelopment
area, the TIF funding cannot be utilized as originally intended.
Therefore, we propose utilizing the $100,000 of TIF funds originally intended for relocation
benefits associated with Site 2 for developmental costs on Site 1. That would allow us to
utilize $100,000 of HOME grant funds on Site 2 which would have been expended on Site 1 for
brick and mortar construction costs. This is not an additional allocation of funds to the
project. It simply is a reallocation of what the TIF funds will be utilized for.
We need council approval to begin the acquisition of the two lots within the Redevelopment
Area as well as approval to enter into the Interlocal Agreement with Flathead County.
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Westside Living Project Costs 3/13/95 3:51 PM
Westside Living - 7 Unit Apartment Complex With 11-aundry
Facility
Located on Lots 9 & 10 of Block 52 (200 Block of 4th Avenue Westj
Six 1-bedroom units @ 650 s . ft.
$234,000
One 2-bedroom unit @ 800 s . ft.
$48,000
One laundry facility @ 130 s . ft.
$7,800
Covered Walkways & Stair Railings
$11,100
5% Contingency Fee
$13.794
$314,600
Architectural Services -7 unit apartment building
$31,500
Cost Estimating - 1% of construction cost
$3,150
Sewer & Water Hookup Fees - 7 unit artment building
$9,920
Man Review Fee $740 & Building Permit $1,140 for 7 units
$13,160
Plan Review Fee $55 & Building Permit $80 for Laundry Room
$140
Landscaping - 7-unit apartment building
$10,650
Site Lighting - 7 unit apartment building
$3,000
Alley Paving - 7 unit apartment building
$1,700
Parking Lot Paving & Sidewalks
$96,020
Westside Living - 3 2-Bedroom Duplexes w/garages
Located Between 6th & 7th Avenues West in approximately the
1200 Block
Duplexes 950 s . ft. @ $50 s . ft. x 6 units
$285,000
Single car garages @ 336 s . ft. @ $12 s . ft. x 6
U.6.350
$311,350
Architectural Services
$31,100
Cost Estimating
$3,110
Sewer & Water Hookup Fees
$7,760
Plan Review Fee & Building Permit $
$3,660
Landscaping - 6 lots
$12,000
Driveways and Access Road to Center Lot
$9,000
Subdivision Costs
$1,510
5% Contingency Fee on Construction items
SJI}Q
$84,740
Total Costs Both Sites
$806,710
Funded Through:
Tax Increment Financing
$200,000
HOME Grant
I
f
HOME Management Plan
and
Interlocal Agreement
Between
FLATHEAD COUNTY AND THE CITY OF KALISPELL
WEST SIDE LIVING APARTMENTS
13-Units for Physically Disabled Individuals or Families
T-H O 104E-M94-S G-3 00123
This Agreement is made this 6th day of March, 1995, between Flathead County and
the City of Kalispell , Montana. Flathead County (Grant Recipient) hereby contracts
with the City of Kalispell for the implementation and administration of a HOME
grant awarded for the construction of thirteen -units of multi -family rentals for
clients of Flathead Head Industries for the Handicapped, Inc. (FIFTH) and other
disabled residents of the community.
1. Administrative Structure:
Flathead County has placed supervision of HOME activities with the Flathead
Regional Development Office. This office functions via an interlocal agreement
between the three cities of Kalispell, Whitefish and Columbia Falls and Flathead
County for the purpose of providing planning and other technical and
administrative assistance.
1. FRDO Director - Steve Herbaly, 758-5980, has been given lead responsibility
for all HOME related activities and functions associated with the West
Side Living project.
2. FRDO ASSISTANT DIRECTOR - Tom Jentz, 758-5980, will be responsible
for final approval of drawdown requests and contractor payments for the
HOME share of the project.
3. ADMINISTRATIVE SECRETARY - Sandy Mueller, 758-5780, will be
responsible for coding all requests for payment and keeping a second set of
financial records as part of the local fiscal control.
4. FLATHEAD COUNTY BOOKKEEPING DEPARTMENT - 758-5526 - Sue
Haverfield, Clerk and Recorder, Flathead County Courthouse, 800 South
Main, Kalispell, will be responsible for maintaining financial records and
files.
5. Ms. Susan Moyer, City of Kalispell's Housing Manager, will be designated
as Project Manager and will be responsible for overall project management
and insuring compliance with applicable Federal and State requirements
for the CDBG project. The Project Manager will serve as the liaison with
Flathead County and Flathead Industries for the Handicapped, Inc. for the
project and will serve as the Labor Standards Officer. (Telephone: A/C 406
752-7491).
6. Mr. Ross Plambeck, City of Kalispell's Redevelopment Manager, will serve
as the Environmental Certifying Officer and as the State Historic
Preservation Office Liaison..(Telephone: A/C 406 758-7742).
IL Prgiect -Management
The City's Environmental Certifying Officer/State Historic Preservation Liaison
will be responsible for:
1. Preparing the Environmental Review Record (ERR) to assure full
compliance with the National and Montana Environmental Policy
Acts, completion of the statutory checklist, and any other applicable
environmental requirements. The Environmental Certifying Officer
will also be responsible for preparing any legal notices required to be
published for the ERR process and conducting any required public
hearings or informational meetings.
2. Securing State Historic Preservation Office clearance for the
housing activity by either district designation or review of plans.
3. Preparing a Request For Release of Funds (RROF) to DOC.
B. The Project Manager will be responsible for:
1. Coordinating applicable acquisition, civil rights and labor standards
requirements.
2. Developing a contract with DOC and assisting the County with all
requirements related to effective project start-up and implementation.
3. Establishing and maintaining complete and accurate project files and
preparing all documentation and reports incidental to administration
of the grant. Upon completion of the project, these files will be
provided to FRDO for future auditing and retention.
4. Assisting the County with selection of an Architect, in conformance
with HOME procurement requirements, including the preparation of
requests for proposals for publication or other distribution.
5. Conducting the contractor selection process, including the bid
advertising, tabulation and award process for conformance to HOME
requirements in cooperation with the Architect. The Project Manager
will review the construction contract provisions for HOME compliance
and will request DOC clearance of the lowest and second lowest bidders
before a contract is awarded. The Project Manager will request
Commissioners' approval to award the bid.
6. Weekly time sheets will be maintained by the Project Manager and all
other staff involved to document time worked on the HOME project.
7. Processing payment requests and preparing drawdown requests for
submission to FRDO, including the Request for Payment and Status of
Funds Report and the Project Progress Report. The FRDO Assistant
Director will review and approve all payments and drawdown requests
to ensure their propriety and proper allocation of expenditures to the
HOME budget prior to the forms being submitted to DOC.
All drawdown requests will be signed by two of the three following
persons: Sue Haverfield, Clerk and Recorder; Steve Herbaly, FRDO
Director; and one of the three County Commissioners
8. Providing project status reports to FRDO at the time of grant draw
downs and/or workshops. Represent the HOME project at any public
meetings, as deemed necessary by the County Commissioners and
FRDO Director.
9. Developing in cooperation with FIFTH a marketing strategy for the
project to ensure a high level of participation by physically or mentally
disabled individuals and households at the 30, 40 and 50% of median
income range. This marketing strategy will include but not be limited
to newspaper advertisements and articles regarding the project; posters;
radio notices; and direct telephone contact with all the local non-profit
sponsors of this project which volunteered to be a referral resource.
10. Coordinating services in cooperation with FIFTH with other agencies,
such as utility companies, Senior Citizens and the County/State Health
and Welfare Departments to achieve maximum impact upon the
needs of low and moderate income disabled households in the project
complex.
11. Preparing all required performance reports and close-out documents
for submittal to FRDO and assist the County with the selection of an
independent auditor.
C. The Architect will be responsible for:
1. The design and construction of the seven unit apartment complex and
three two -bedroom duplex units.
2. Preparing the construction bid package in conformance with applicable
HOME requirements.
3. Conducting a PreConstruction Conference in conjunction with the
Project Manager.
4. Supervision of construction work and preparation of inspection
reports.
5. Reviewing and approving all contractor requests for payments and
submitting the approved requests to the Project Manager for payment.
III. Financial Management
1. Financial and project management will be coordinated as all financial
and project activity will be funneled through the FRDO staff. The
Project Manager will simultaneously provide FRDO approved
construction payment requests and completed drawdown requests to
achieve reimbursement.
2. The FRDO Assistant Director will review and approve applicable
payment requests and drawdown requests and forward to the financial
supervisor, Sue Haverfield in bookkeeping for processing.
3. The City will use Tax Increment Funds to acquire the properties and
pay relocation costs incurred at Site 1. The remaining Tax Increment
Funds will pay for site clearance and demolition and developmental
costs . These developmental costs will include: Architectural services,
sewer and water hookups, plans review fees and building permits as
well as alley paving, landscaping, site lighting, sidewalks and parking
area paving. The Project Manager, on behalf of the City, will be
responsible for this aspect of the project.
4. Following acquisition, the HOME funds will be expended first on the
actual brick and mortar construction at Site 1. The remaining HOME
funds will then be applied to all developmental costs incurred at Site 2.
The HOME funds will remain with the County and disbursement of
funds will be through vouchers prepared by the Project Manager.
5. FIFTH will use $24,000 of Federal Home Loan Bank of Seattle's
Affordable Housing Program grant funds for brick and mortar
construction. Additionally they will arrange for permanent financing
for the balance of the brick and mortar construction funds in the
amount of necessary to complete the construction.
6. The construction financing will be provided by Glacier Bank, and
disbursement will be made by payment requests prepared by the Project
Manager. Additionally, Glacier Bank will provide the necessary
permanent financing to FIFTH.
7. Financial record keeping will be done in conformance with the
recommendations of the DOC/Local Government Services Bureau as
described in Chapter 4 of the CDBG Administration Manual. The
original financial documents (claims with attached supporting
material) will be provided by the City to the County and retained in the
County's files upon completion of the project.
8. The use of program income received after project close out will be
limited to those activities eligible under the HOME program and will
be determined at the discretion of the County Commissioners. A
specific Program Income Plan will be developed by the Project Manager
for approval by the County Commissioners.
A project implementation schedule, which outlines the basic steps and timetable
involved in the management of the project, is included as an exhibit in the contract
with DOC.
Bruce Williams, City Manager
City of Kalispell
Date of Signature
Attest:
Amy Robertson, Finance Director
Howard W. Gipe, Chairman
Flathead County Commissioners
Date of Signature