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04. Resolution 4385 - Budget Amendment - HOME GrantAgenda -December 15,1997 AGENDA ITEM 4 - RESOLUTION 4385-BUDGET AMENDMENT -HOME GRANT BACKGROUND/RECOMMENDATION: Previous explanations have been presented. I recommend approval of this amendment. RESOLUTION NO. 4385 A RESOLUTION TO AMEND THE ANNUAL APPROPRIATIONS OF THE CITY OF KALISPELL, MONTANA, AS SET FORTH IN THE 1997-98 BUDGET ADOPTED BY THE CITY COUNCIL FOR THE HOME INVESTMENT PARTNERSHIPS PROGRAM. WHEREAS, the annual appropriation for the HOME Investment Partnerships Program is a federal grant received subsequent to the adoption of the Fiscal 1997-98 budget, in accordance with M.C.A. 7-6-4271, and WHEREAS, the source of funds is federal money passed through the Montana Department of Commerce in the amount of $400,000.00, and WHEREAS, the Planning, Economic and Community Development Department is a recipient of the HOME Grant Award on behalf of Samaritan House, and WHEREAS, said Grant is revenue accruing to the City not appropriated pursuant to Section 7-6-4271, and constitutes an overall increase in appropriation authority, and WHEREAS, the appropriate fund is a Special Revenue fund, 2940, with the appropriate expenditure line item for construction of a 35-bed shelter, and WHEREAS, the City Council on December 15, 1997 held a public hearing on appropriating funds from the HOME Investment Partnerships Program. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF KALISPELL FOLLOWS: SECTION I. That the annual appropriation for Special Revenue Fund, 2940, as a result of the Home Grant Award on behalf of Samaritan House, is hereby increased by the sum of $400,000.00. SECTION II. This Resolution shall become effective immediately upon its passage by the City Council. j:\wp\res\HOMEbudget PASSED AND APPROVED BY THE CITY COUNCIL AND MAYOR OF THE CITY OF KALISPELL, THIS DAY OF DECEMBER, 1997. DOUGLAS D. RAUTHE - MAYOR ATTEST: Debbie Gifford, CMC Clerk of Council j:\wp\res\HOMEbudget !Planning, Economic & Community Development Department P.O. Box 1997 Kalispell, MT 59903-1997 DATE: December 10, 1997 I e (1q� 0i KaIlvll Incorporated 1892 137 TO: Lawrence Gallagher, Director Planning, Economic and Community Development FROM: Susan Moyer, Housing Manager, PECDD SUBJECT: Pending Agreements With Samaritan House 248 Third Avenue East (406) 758-7740 (406) 758-7739 (office fax) (406) 758-7758 (City Hall fax) Larry, attached are draft Management Plans which were included in the CDBG Public Facilities Grant application as well as the HOME Grant application awarded to date. Until we know what, if any, additional items need to be covered as required in the Supportive Housing Grant out of Washington, D. C., it isn't timely to pursue the final version of either a Management Plan or a Program Income Plan at this time. These plans must be in place prior to release of funds and construction starting on any of the three phases. The following is a listing of some of the items which will have to be addressed in the final documents • Insure that both the City and Samaritan House have identified and adopted the following applicable policies and procedures most relevant to the grant process and the final operation of the expansion: • Non -Discrimination • Prohibition of Discrimination on Basis of Religion • Equal Opportunity Policy • Environmental Impact • Historic Preservation • Fair Housing Policy • Affirmative Marketing • Policy to Ensure a Drug -Free Workplace • Policies related to compliance with the Hatch Act • Lead -Based Paint Administrative Responsibilities for City & Samaritan House: • Prior to grant close out - includes the bidding and construction process • After the grant is closed out - long term monitoring by the City as well as establishing operating procedures for Samaritan House • Incorporate Appendix K (Samaritan House Requirements) into this section • Financial Management for the City & Samaritan House: • During Grant - Authorized expenditures, Montana Department of Commerce draw down procedures & Davis -Bacon Compliance/Labor Standards • After Grant Close Out • Adopt a Program Income Plan which will: Commit all Program Income throughout the 50+ year term of the agreement to be utilized ti EQUAL Whl&> OPPORTUNITY solely for the management and maintenance of the apartment units created through this funding as well as supporting the operating and maintenance costs of the shelter itself. Create a mechanism whereby any excess Program Income not utilized for eligible activities at Samaritan House is returned to the City of Kalispell. Long Term Monitoring to insure: • Financial eligibility of those receiving shelter and/or transitional or permanent rental units • That the rents do not exceed those established by HUD nor do they exceed 30% of the recipients' gross annual incomes • That any Program Income generated is expended only on eligible activities budgeted for the Samaritan House Complex • That an established, approved Continuum of Care Program remains in place Establish criteria for annual auditing of Program Income Update the Policies and Procedures Manual of Samaritan House where applicable • Signed commitment agreements with local service providers for onsite and/or off site continuum of care services. Identify how case management will be handled for tenants in the transitional and permanent rental units vs. the homeless being assisted in shelter. The purpose is not to duplicate services that are and should be provided elsewhere. • Create a Montana Department of Commerce approved lease agreement for tenants of Samaritan House's transitional and/or permanent rental units. ?<� � �� 101 411� cc: Clarence Krepps, City Manager c:\Samaritan House\Council\Agreements CDBG PUBLIC FACILITIES GRANT CITY OF KALISPELL SAMARITAN HOUSE SHELTER FACILITY DRAFT MANAGEMENT PLAN Purpose The purpose of the Management Plan is to describe the administrative structure, the program management, staffing and contracted services, project schedule and the financial management required to effectively undertake and complete the Samaritan House Shelter Facility Project. The Plan is designed to assure compliance with all applicable CDBG, and all other applicable federal, state, and local regulations. Non -Discrimination It is the policy of the City of Kalispell and Samaritan House, Inc. to provide equal opportunity to all of its employee and applicants for employment, contractors and bidding or proposing contractors, and service recipients and to assure that there shall be no discrimination against any person on the basis of race, color, religion, creed, national origin, sex, age, physical or mental handicap, marital status or political beliefs unless related to a bona fide occupational requirement. To this end, the City of Kalispell and Samaritan House will take affirmative actions to equalize opportunity at all levels of operation for those classes of people who have traditionally been denied equal opportunity -- minority group members, women, and the handicapped; and the City of Kalispell and Samaritan House recognize an obligation to make reasonable accommodations to the known physical or mental limitations of an otherwise qualified handicapped applicant or employee unless the accommodation imposes an undue hardship. Overall Administrative Structure The project is a joint effort of the City of Kalispell and Samaritan House, Inc. The Project Management Plan is incorporated into the overall City of Kalispell and Samaritan House organizational policies and procedures. The current City of Kalispell and Samaritan House personnel, fiscal, and other general policies and procedures also govern, as applicable, the management and operation of the project. Those portions of the existing City of Kalispell and Samaritan House policies and procedures most relevant to the direct activities of the project are attached, including the following: Equal Opportunity Policy, Fair Housing Policy, Policy to Ensure a Drug -Free Workplace, and policies related to compliance with the Hatch Act. If there is ever a conflict between City and Samaritan House policies and procedures governing the project, the applicable policies and procedures will be the City's. 70 CDBG PUBLIC FACILITIES GRANT The administration of the project will be integrated into the overall City of Kalispell organizational structure. The City is an incorporated city with a City Manager/Council form of government. The City will manage the project on behalf of Samaritan House. The City will be ultimately responsible for all aspects of project management, and the construction and professional service contracts for the project will be between the service providers and the City. Samaritan House will be involved in the key management decisions through consultation with its Board of Directors and the Construction Manager, Mike Laabs, who is also a member of the Board. Once the construction of the shelter facility has been completed, Samaritan House will be responsible for ownership and management of the facility. The City will execute a Sub -Recipient Agreement with Samaritan House restricting the use of the property as a homeless shelter and specifying continued compliance with all applicable CDBG and City Regulations. Staffing and Contracted Services The following staffing plan and contracted services plan delineates the major responsibilities of all project personnel. Ci . Manager. Clarence Krepps (406)758-7703 As the City's official administrator, the City Manager will have the responsibility for all official contacts with the Montana Department of Commerce (MDOC). The City Manager and the City Council will have the ultimate responsibility for the management of project activities and expenditures of CDBG funds. The final approval of all contracts and draw down requests will be the responsibility of the City Council. Finance Director, Amy Robertson (406)758-7755 As the City's chief financial officer, the Finance Director will be responsible for the management of, and record keeping for, the CDBG funds and other funds involved in financing the construction of the shelter facility. City Attorney, Glen Neier (406 75) 8-7709 As the City's legal counsel, the City Attorney will review and advise the City Manager and Council regarding any proposed contractual agreements associated with the CDBG project, including agreements between Samaritan House and the City, and will provide any other legal guidance as necessary. 71 CDBG PUBLIC FACILITIES GRANT Environmental Certifying ing Officer, Ross Plambeck. (406)758-7742 The City Redevelopment Manager, Ross Plambeck, will be designated as the Environmental Certifying Officer and as the State Historic Preservation Office Liaison. The Environmental Certifying Officer will: • Prepare the Environmental Review Record (ERR) to assure full compliance with the National and Montana Environmental Policy Acts, complete the statutory checklist, and any other environmental requirements. • Prepare any legal notices required to be published for the ERR process and conduct any required public hearing or informational meetings. • Secure State Historic Preservation Office clearance if applicable. • Prepare a Request for Release of Funds (RROF) to MDOC. Director of Planning, Economic and Community Development. Lawrence Gallagher (406)758-7741) The Director will review and approve all claims and draw down requests prepared by the Project Manager Project Manager, Susan Moyer (406)758-7743. The City Housing Manager, Susan Moyer, will be designated as Project Manager and will be responsible for overall project management and insuring compliance with applicable Federal, State and local requirements for the CDBG project. The Project Manager will serf e as the City's liaison with MDOC for the project and will serve as the Labor Standards Officer. More specifically, the Project Manager will: • Develop, in consultation with the City Attorney, a CDBG contract with MDOC. • Develop, in consultation with the City Attorney, a Sub -Recipient contract with Samaritan House. • Assure compliance with all applicable procurement and civil rights requirements. The City has an equal opportunity plan and a fair housing ordinance currently in place. • Review all project expenditures, process pay requests, and draw down requests in coordination with the Finance Director. • Prepare or review and submit all CDBG draw down requests and reports. • Monitor all CDBG project activities for compliance with all applicable requirements. • Establish and coordinate the maintenance of complete and accurate project files. • Prepare or review all project documentation and reports. • Review in conjunction with the City Attorney construction contract provisions for compliance. • Conduct in conjunction with the Construction Manager and Project Architect the pre -bid and pre - construction conferences. CDBG PUBLIC FACILITIES GRANT • Review monitoring of contractor compliance with all applicable requirements. • Review and recommend for approval all contractor requests for payment. • Review monitoring of construction for quality, completeness, and conformance with the project schedule. • Serve as the Project Labor Standards Officer. Approve weekly payroll reports and review applicable employee interview records and on -site reports. • Prepare or review and submit all CDBG close out documents. • Monitor the project for long term compliance with income targeting and compliance with all other CDBG and City requirements. Project Coordinator, Carol Grigg (406)758-7743 Carol Grigg of the City Planning, Economic, and Community Development Department will be designated as Project Coordinator and will be responsible for overall files, tracking of expenditures, performing liaison functions with the Construction Manager, Project Architect and Project Contractor, and assisting with draw downs and close out procedures. More specifically, the Project Coordinator will: • Assist in processing payment requests and preparing draw down requests to MDOC, including Request for Payment and Status of Funds Reports and Project Progress Reports. The invoices and the actual draw down requests will be reviewed for accuracy and correctness of payment and approved by the Project Manager prior to signature by upper management. • Assist in preparing proper files, tracking expenditures, performing Iiaison duties between the City and the Project Contractor, Architect, and Construction Manager. • Assist in monitoring for Davis Bacon Wage Law compliance including conducting weekly on - site contractor employee and subcontractor interviews, and certified payroll record monitoring to compare and verify actual job classifications worked with payment of the corresponding prevailing wage rates and applicable fringe benefits. • Assist in completing all required performance reports and close out documents. Construction Manager, Mike Laabs (406)837-2702 Mike Laabs of Laabs and Associates has committed up to three years of professional Construction Management services for the project and subsequent phases of the Samaritan House Comprehensive Development Program. As Construction Manager, Laabs will be responsible for the day to day management of the project development and construction activities. More specifically, the Construction Manager will: { • Review and recommend for approval the site plan and building designs, plans, specifications, and bid documents. 73 CDBG PUBLIC FACILITIES GRANT • Conduct contractor bidding and selection process, including the publications and distributions of invitations to bid. • Conduct pre -bid and pre -construction meetings in conjunction with the Project Manager and Project Architect. • Assist in conjunction with the Project Manager and Project Architect with the selection of project contractors, including the publications and distributions of invitations to bid. • Conduct inspections of contract work and prepares inspection reports. • Review and recommend approval of all contractor requests for payment. • Monitor contractor compliance with all applicable requirements. • Monitor construction for quality, completeness, and conformance with the project schedule. • Assist in conjunction with the Project Architect the preparation of the certification of completion. Project Architect, Architect Design Group. (406)257-7125 • Responsible for site plan and building designs, plans, specifications, and bid documents. • Review and recommend for approval all contractor pay requests and change order requests. • Provide shop drawings during construction as necessary. • Conduct monthly site inspections and prepare monthly inspection reports • Provides reproducible as -built drawings upon project completion. • Prepares in conjunction with the Construction Manager the certification of completion. Project Contractor (to be selected through the competitive bidding:process)z A general contractor will be selected in accordance with all applicable CDBG, and other federal, state, and local regulations. The contractor must be appropriately bonded, have all required insurance, and not be debarred from participating in CDBG funded projects. The contractor will be responsible for construction of the project in accordance with approved plans, specifications, and bid document requirements. The construction contract will specify the construction work to be completed and warranted as well as compliance with all applicable CDBG and other federal, state, and local regulations. Samaritan House The Samaritan House Board of Directors will be involved in reviewing and approving all professional and construction services solicitation processes, and selection processes as well as all building plans and specifications. Samaritan House will be responsible for the ongoing management of the shelter facility upon completion and certification for occupancy. The operating plan for the completed facility is provided in Appendix K, Special Requirements for Projects Involving Nonprofit Organizations. 74 CDBG PUBLIC FACILITIES GRANT Financial Management Financial management will be done in accordance with all applicable federal, state and local requirements. In order to assure proper financial management of the project, the following activities and procedures will be implemented. • Establish the non -interest bearing CDBG bank account and transfer CDBG funds from that account to the City's treasury for disbursements, based on claims and supporting documents approved by the Project Manager, the Construction Manager, and the Project Architect. Since the City uses an interest bearing account for its general disbursements, a separate non -interest bearing account will be used for CDBG funds. Balances in that account will not exceed $5,000 for a period of three days. • Establish a project construction and development escrow account for deposit of Samaritan House Building Donation funds. Escrowed funds can only be disbursed based on claims and supporting documents approved by the Project Manager, the Construction Manager, and the Project Architect. • Establish a project construction account at Glacier Bank for the Federal Home Loan Bank Affordable Housing Program funds. These funds can only be disbursed by the Bank based on claims and supporting documents approved by the Project Manager, the Construction Manager, and the Project Architect. • Enter all CDBG project transactions into the City's existing accounting system (BARS), and prepare checks for approved expenditures. • The Finance Director with the assistance of the Project Manager will prepare the final financial reports for project close out. • The Project Manager with assistance of the Construction Manager and Project Architect will review all proposed expenditures of CDBG and other project funds and will prepare draw down requests, which will be signed by the officials cited above. All disbursements will be handled in accordance with the City's established claim review procedures. Before submitting the claim to the Department Director, the Project Manager will attach a certification to each claim stating that the proposed expenditure is an eligible expense to the City's CDBG project and is consistent with the project budget. The Council will review all CDBG and City claims before approving them. • All draw down requests will be signed by two of the following three persons: Clarence Krepps, City Manager; Amy Robertson, Finance Director; and Lawrence Gallagher, Director of Planning, Economic, and Community Development. No expenditures of CDBG or City funds will be made without the approval of the Council at a regular meeting. • Financial record keeping will be done in conformance with the recommendations of the t' MDOCIL.ocal Government Services Bureau as described in Chapter 4 of the CDBG 75 CDBG PUBLIC FACILITIES GRANT Administrative Manual. The original financial documents (claims with attached supporting �t material) will be retained in the City offices. Long Term Monitoring The City of Kalispell will be responsible for the long term monitoring of the project for compliance with CDBG requirements. The project will be monitored to assure compliance with all low income targeting and other CDBG requirements as well as proper management and maintenance of the facility. The City and CDBG requirements will be enforceable through a lien and deed restriction agreement on the property. The City will conduct on -site monitoring visits of the facility at least annually during a 50 year retention period to assure compliance with occupancy and maintenance standards. Program Income Plan As a shelter for indigent households, no program income is expected. In the unlikely event that program income is ever generated in the future, the City of Kalispell would retain such income. Upon approval of the Montana Department of Commerce, the City would use Program income only for the eligible CDBG activities. Samaritan House would notify the City of Kalispell and the City would in turn notify the Montana Department of Commerce upon receipt of any program income. The City would maintain the following program income records: • sources of program income including interest earned; • dates and amounts of program income deposits and disbursements; • the activities funded with program income; and • evidence of compliance with Title II requirements. Pro'eca t Implementation Schedule A 14 month project development and construction schedule is provide on pp. 77 & 78. A "state of the art" critical path method schedule has been developed in consultation with the Project Architect and the Construction Manager to assure project completion within the 14 month period, well within 24 months from the time of CDBG notice of funding award. In the event of unusual weather or other conditions beyond the control of the City, the schedule could be readily adjusted to be completed within an 18 month period. 0 HOME GRANT - DRAFT OF MANAGEMENT PLAN CITY OF KALISPELL SAMARITAN HOUSE EXPANSION PROJECT MANAGEMENT PLAN Purpose The purpose of the Management Plan is to describe the administrative structure, the program management, staffing and contracted services, project schedule and the financial management required to effectively undertake and complete the Phase II component of the Samaritan House Expansion Project. The Plan is designed to assure compliance with all applicable HOME, Supportive Housing Program, and other applicable federal, state, and local regulations. Non -Discrimination It is the policy of the City of Kalispell and Samaritan House, Inc. to provide equal opportunity to all of its employee and applicants for employment, contractors and bidding or proposing contractors, and service recipients and to assure that there shall be no discrimination against any person on the basis of race, color, religion, creed, national origin, sex, age, physical or mental handicap, marital status or political beliefs unless related to a bona fide occupational requirement. To this end, the City of Kalispell and Samaritan House will take affirmative actions to equalize opportunity at all levels of operation for those classes of people who have traditionally been denied equal opportunity — minority group members, women, and the handicapped; and the City of Kalispell and Samaritan House recognize an obligation to make reasonable accommodations to the known physical or mental limitations of an otherwise qualified handicapped applicant or employee unless the accommodation imposes an undue hardship. Overall Administrative Structure The project is a joint effort of the City of Kalispell and Samaritan House, Inc. The Project Management Plan is incorporated into the overall City of Kalispell and Samaritan House organizational policies and procedures. The current City of Kalispell and Samaritan House personnel, fiscal, and other general policies and procedures also govern, as applicable, the management and operating of the project. Those portions of the existing City of Kalispell and Samaritan House policies and procedures most relevant to the direct activities of the project are attached, including the following: Equal Opportunity Policy, Fair Housing Policy, Policy to Ensure a Drug -Free Workplace, and policies related to compliance with the Hatch Act. If there is ever a conflict between City and Samaritan House policies and procedures governing the project, the applicable policies and procedures will be the City's. Page 1 of 8 The administration of the project will be integrated into the overall City of Kalispell organizational structure. The City is an incorporated city with a City Manager/Council form of government. The City will ultimately be responsible for all aspects of construction project management, and the construction and professional service contracts for the project will be between the service providers and the City. Samaritan House will be involved in the key management decisions through consultation with its Board of Directors and the Construction Manager, Mike Laabs, who is also a member of the Board. Once the construction of the concourse building and the acquisition and rehabilitation of the eight -one bedroom units directly across the street have been completed, Samaritan House will be responsible for ownership and management of the facility. The City will execute a Sub -Recipient Agreement with Samaritan House restricting the use of Phase II of the property as transitional living units and specifying continued compliance with all applicable HOME, Supportive Housing Program and City Regulations. Staffing and Contracted Services The following staffing plan and contracted services plan delineates the major responsibilities of all project personnel. Citv Manaaer, Clarence Krep sp (406) 758-7703 As the City's official administrator, the City Manager will have the responsibility for all official contacts with the Montana Department of Commerce (MDOC). The City Manager and the City Council will have the ultimate responsibility for the management of project activities and expenditures of HOME and Supportive Housing Program funds. The final approval of all contracts and draw down requests will be the responsibility of the City Council. Finance Director. Amy Robertson (406) 758-7755 As the City's chief financial officer, the Finance Director will be responsible for the management of, and record keeping for, the HOME and Supportive Housing Program funds and City funds involved in financing Phase II of the shelter expansion. City Attorney, Glen Neier (406) 758-7709 As the City's legal counsel, the City Attorney will review and advise the City Manager and Council regarding any proposed contractual agreements associate with the HOME and Supportative Housing Program project, including agreements between Samaritan House and the City, and will provide any other legal guidance as necessary. Page 2 of 8 HOME GRANT - DRAFT OF MANAGEMENT PLAN Environmental Certifying Officer, Ross Plambeck (406) 758-7742 J The City Redevelopment Manager, Ross Plambeck, will be designated as the Environmental Certifying Officer and as the State Historic Preservation Office Liaison. The Environmental Certifying Officer will: • Prepare the Environmental Review Record (ERR) to assure full compliance with the National and Montana Environmental Policy Acts, complete th4e statutory checklist, and any other environmental requirements. • Prepare any legal notices required to be published for the ERR process and conduct any required public hearing or informational meetings. • Secure State Historic Preservation Office clearance if applicable. • Prepare a Request for Release of Funds (RROF) to MDOC. Director of Planning, Economic and Community Development Lawrence Gallagher. (406 7741) The Director will review and approve all claims and draw down requests prepared by the Project Manager. Project Manager, Susan Mover (406) 758-7743 The City Housing Manager, Susan Moyer, will be designated as Project Manager and will be responsible for overall project management and insuring compliance with applicable Federal, State and local requirements for the HOME and Supportive Housing Program project. The Project Manager will serve as the City's liaison with MDOC for the project and will serve as the Labor Standards Officer. More specifically, the Project Manager will: • Develop, in consultation with the City Attorney, HOME and Supportive Housing Program contracts with MDOC and HUD. • Develop, in consultation with the City Attorney, a Sub -Recipient contract with Samaritan House. • Assure compliance with all applicable procurement and civil rights requirements. The City has an equal opportunity plan and a fair housing ordinance currently in place. • Review all project expenditures, process pay requests, and draw down requests in coordination with the Finance director. • Prepare or review and submit all HOME and Supportive Housing Program draw down requests and reports. • Monitor all HOME and Supportive Housing Program project activities for compliance with all applicable requirements. • Establish and coordinate the maintenance of complete and accurate project files. • Prepare or review all project documentation and reports. • Review in conjunction with the City Attorney construction contract provisions for compliance. Page 3 of 8 • Conduct in conjunction with the Construction Manager and Project Architect the pre -bid and preconstruction conferences. • Review monitoring of contractor compliance with all applicable requirements. • Review and recommend for approval all contractor requests for payment. • Review monitoring of construction for quality, completeness, and conformance with the project schedule. • Serve as the Project Labor Standards Officer. Approve weekly payroll reports and review applicable employee interview records and on -site reports. • Prepare or review and submit all HOME and SHP close out documents. • Monitor the project for long term compliance with income targeting and compliance with all other HOME, Supportive Housing Program, and City requirements. Project Coordinator. Carol Grigg L4061759-7743 Carol Grigg of the City Planning, Economic and Community Development Department will be designated as Project Coordinator and will be responsible for overall files, tracking of expenditures, performing liaison functions with the Construction Manager, Project Architect and Project Contractor, and assisting with draw downs and close out procedures. More specifically, the Project Coordinator will: • Assist in prepai'ing proper files, tracing expenditures, performing liaison duties between the City and the Project Manager, Project Architect and Construction Manager. • Assist in monitoring for Davis Bacon Wage Law compliance including conducting weekly on -site contractor employee and subcontractor interviews, and certified payroll record monitoring to compare and verify actual job classifications worked with payment of the corresponding prevailing wage rates and applicable fringe benefits. • Assist in completing all required performance reports and close out documents. Construction Manager, Mike Laabs (406) 837-2702 Mike Laabs of Laabs and Associates has committed up to three years of professional Construction Management services for the project and subsequent phases of the Samaritan House Expansion. As Construction Manager, Laabs will be responsible for the day to day management of the project development and construction activities. More specifically, the Construction Manager will: • Review and recommend for approval the site plan and building designs, plans, specifications and bid documents. • Conduct, along with the Project Manager, contractor bidding and selection process, including the publications and distributions of invitations to bid. • Conduct pre -bid and pre -construction meetings in conjunction with the Project Manager and the Project Architect. • Assist in conjunction with the Project Manager and Project Architect with the selection of Page 4 HOME GRANT - DRAFT OF MANAGEMENT PLAN project contractors, including the publications and distributions of invitations to bid. ® Conduct inspections of contract work and prepares inspections reports. ® Review and recommend approval of all contractor requests for payment. ® Monitor contractor compliance with all applicable requirements. • Monitor construction for quality, completeness and conformance with the project schedule. Assist in conjunction with the Project Architect the preparation of the certification of completion. Project Architect, Architect Design Group, (4061257-7125 ® Responsible for site plan and building designs, plans, specifications, and bid documents. • Review and recommend for approval all contractor pay requests and change order requests. • Provide shop drawings during construction as necessary. ® Conduct monthly site inspections and prepare monthly inspection reports. • Provides reproducible as -built drawings upon project completion. • Prepares in conjunction with the Construction Manager the certification of completion. Project Contractor (to be selected through the competitive bidding process) A general contractor will be selected in accordance with all applicable HOME, Supportive Housing Program, and other federal, state, and local regulations. The contractor must be appropriately bonded, have all required insurance, and not be debarred from participating in HOME or Supportive Housing Program funded projects. The contractor will be responsible for construction of the project in accordance with approved plans, specifications and bid document requirements. The construction contract will specify the construction work to be completed and warranted as well as compliance with all applicable HOME, Supportive Housing Program, and other federal, state, and local regulations. Samaritan House The Samaritan House Board of Directors will be involved in reviewing and approving all professional and construction services solicitation processes, and selection processes as well as all building plans and specifications. Samaritan House will be responsible for the ongoing management of the transitional living units created in Phase II of the expansion project upon completion and certification for occupancy. The Samaritan House Operating Plan for the completed facility is provided in AppendixAl, pages L thru . I Page 5 Financing Management Financial management will be done in accordance with all applicable federal, state and local requirements. In order to assure proper financial management of the project, the following activities and procedure will be implemented. Establish the non -interest bearing HOME and Supportive Housing Program bank accounts and transfer funds from those accounts to the City's treasury for disbursements, based on claims and supporting documents approved by the Project Manager, the Construction Manager, and the Project Architect. Since the City uses an interest bearing account for its general disbursements, separate non -interest bearing accounts will be used for the HOME and Supportive Housing Program funds. Balances in that account will not exceed $5,000 for a period of three days. • Establish a project construction and development escrow account for deposit of Samaritan House Building Donation funds. Escrow funds can only be disbursed based on claims and supporting documents approved by the Project Manager, the Construction Manager, and the Project Architect. • Establish a project construction account at Glacier Bank for the Federal Home Loan Bank Affordable Housing Program funds. These funds can only be disbursed by the Bank based on claims and supporting documents approved by the Project Manager, the Construction Manager, and the Project Architect. • Enter all HOME and Supportive Housing Program project transactions into the City's existing accounting system (BARS), and prepare checks for expenditures. • The Finance Director with the assistance of the Project Manager will prepare the final financial report for project close out. • The Project Manager with assistance of the Construction Manager and Project Architect will review all proposed expenditures of HOME, Supportive. Housing Program, and other project funds and will prepare draw down requests, which will be signed by the officials cited above. All disbursements will be handled in accordance with the City's established claim review procedures. Before submitting the claim to the Department Director, the Project Manager will attach a certification to each claim stating that the proposed expenditure is an eligible expense to the City's HOME or Supportive Housing Program project and is consistent with the project budget. The Council will review all HOME, Supportive Housing Program, and City claims before approving them. All draw down requests will be signed by two of the following three persons: Clarence Krepps, City Manager; Amy Robertson, Finance Director; and Lawrence Gallagher, Director of Planning, Economic and Community Development. No expenditures of Page 6 HOME GRANT - DRAFT OF MANAGEMENT PLAN HOME, Supportive Housing Program, or City funds will be made without the approval of t the Council at a regular meeting. 3 • Financial record keeping will be done in conformance with the recommendations of the MDOC/Local Government Services Bureau as described in the appropriate chapter of the HOME Administrative Manual. The original financial documents (claims with attached supporting material) will be retained in the City officers. Long Term Monitoring The City of Kalispell will be responsible for the long term monitoring of the project for compliance with HOME and Supportive Housing Program requirements. The project will be monitored to assure compliance with all low income targeting and other HOME or Supportive Housing Program requirements as well as proper management and maintenance of the facility. The City, HOME, Supportive Housing Program, and Affordable Housing Program requirements will be enforceable through alien and deed restriction agreement on the property. The City will conduct on -site monitoring visits of the facility at least annually during a minimum twenty (20) year retention period to assure compliance with occupancy and maintenance standards. Program Income Plan If program income is generated sometime in the future after debt retirement, the City of Kalispell will ensure that such program income is redistributed into the shelter component of this project. The intent of Phases II and III of the Samaritan House Expansion is not only to meet the needs of the community as they relate to housing but to provide a monthly income greater than expenses. This monthly income will then be utilized to address the need for a paid staff at some time in the future and to allow all of Samaritan House, especially the shelter, to function as an independent entity and no longer be dependent on month to month donations from the community. The goal is a viable, independent, self-sustaining entity. Upon approval of the Montana Department of Commerce, the City will maintain the following program income records: • Sources of program income including interest earned; • Dates and amounts of program income deposits and disbursements; • The activities funded with program income; and • Evidence of compliance with Title II requirements. Project Implementation Schedule A 14 month project development and construction schedule is provide on pages of the grant Page 7 application. A "state of the art" critical path method schedule has been developed in consultation with the Project Architect and the Construction Manager to assure project completion within the 14 month period, well within 18 months of the HOME and/or Supportive Housing Program notices of funding award. In the event of unusual weather or other conditions beyond the control of the City, the schedule could be readily adjusted to be completed within an 18 month period. Charles C. White Douglas D. Rauthe, Mayor Chairman of the Board Samaritan House, Inc. Date of Signature Date of Signature Date Approved by Samaritan House Date Approved by City Council Board of Directors lvla/�+ Lr DRAFT - OPERATING PLAN FOR SAMARITAN HOUSE MISSION STATEMENT POLICY MANUAL AND OPERATING PLAN FOR SAMARITAN HOUSE Mission Statement Samaritan Houses' mission is to provide shelter and the basic needs for homeless people in the Flathead Valley, while supporting their efforts to fmd employment and housing. For this purpose we will provide a healthy, clean environment that is drug and alcohol free. All this is to be done in a loving and kind manner that will uphold the human dignity of each person. Policy Manual and Shelter Rules for Residents It is the policy of Samaritan house that its services be rendered in as personal way as possible; that respect for the individual person and his dignity be of primary concern; that every person is considered to be worthy and valuable as a human being regardless of his race, religion, beliefs, social status, physical appearance or any handicap. Consequently every person should be met with concern, a presumption of trustworthiness, and a respectful attitude by the staff. ti To involve all parties in the community regardless of faith, in an effort to demonstrate that people do care, and to recognize that the unfortunate are often powerless to help themselves. To coordinate with all other social agencies through the Continuum of Care process. It is important when dealing with people's problems to establish positive contacts with other programs established in the community. To expend to our fellow man love and concern in his hour of need, so that each may know that we truly are brothers and sisters regardless of race, color, or creed. If you have a weapon, it must be checked at the office. Drugs, alcohol and rowdiness will not be tolerated. No showers or unnecessary noise after 10 p.m. Everyone is to be in their rooms after 10 p.m., TV's off after 10 o'clock news. No pets. Children must be under parental supervision at all times. Clients are not allowed in each others rooms; there is a coffee room for visiting. Outside visitors are not allowed in the building, meet your friends elsewhere. Nine o'clock curfew in the winter, 10 o'clock in the summer, doors are then secured. If you are not in, you may come back in the morning and collect your things. Exceptions for those working nights. See Sister June. All mail comes to the office, you may use this address and phone number on job applications. The office will accept business calls only, no personal calls. Help keep your unit clean. Beds neatly made, dishes done and garbage emptied before you leave in the morning. There will be periodic inspection by a staff member, failure to observe these requirements is reason for dismissal: Should there be a suspicion of drugs being used, the authorities will be notified and an inspection made. Showers are required the first night. Page 1 of 6 Operating Plan A. Nonprofit Organization Defined Samaritan House, Inc. is incorporated under Montana law and recognized as nonprofit, 501(c)(3) tax exempt organization under the U. S. Internal Revenue Service regulations. B. Nondiscrimination Samaritan House is an equal opportunity employer and provides all its services and operates its facilities without discrimination, in accordance with the civil rights law and regulations of the United States and the State of Montana. The Samaritan House Fair Housing Statement and Affirmative Marketing Policy are provided as attachments to this Appendix. C. Operating Plan t Project Beneficiaries Eligibility and Qualification Requirements As the only emergency shelter facility serving Northwest Montana as well as providing transitional living and permanent rental units, Samaritan House will serve homeless families and individuals predominately in the 60% percent and below of the area median income. It is expected, based on the past experience of operating the existing shelter, that shelter participants will generally have either no income or incomes generally below 30% of the area median. It further is anticipated that residents moving up into the transitional and permanent housing units will generally have incomes in the 60% and 50% and below of median. The following are the specific eligibility and qualification requirements for shelter and transitional services: • The household has experienced a disaster such as fire, flood, threat of or actual physical violence or similar catastrophe that has resulted in homelessness, and there is no other emergency housing available to the household. • There is a community disaster or catastrophe necessitating emergency shelter for households affected by such a disaster. • Samaritan House is the shelter facility of last resort and applicants must certify the they have no other reasonable shelter resource. Transitional living units will be provided first to those residents moving up out of shelter care. Page 2 of 6 Applicants must agree to comply with the Rules for Residents while in shelter care. • Alcohol and drug use or possession is strictly prohibited, and applicants must not be intoxicated or under the influence of illegal drugs at the time of intake and admittance to shelter care. Application Process Applicants for shelter or transitional services may be self referred or referred by another agency or organization. Applications for shelter are accepted 24 hours per day. Applicants must be pre-screened for eligibility and qualifications through a personal interview. Prior to admittance for shelter, applicants must certify that they are income eligible, have no other reasonable access to shelter, and that they will abide by all shelter rules and regulations. An Initial Interview and Check In Form will be completed for each applicant household. Verification of Eligibility Eligibility must be determined on the basis of a personal interview and verification of all pertinent information. Households seeking emergency shelter or transitional living units may self -certify income and other eligibility. However, for residents receiving more than 14 days of shelter or a transitional living unit, verification of income, assets, and other pertinent information will be obtained whenever possible through third written party documentation. Under the specific circumstances when all other efforts fail, information may be verified verbally. However, such verification must be fully documented in writing, signed by the staff person obtaining the information, and kept in the household's file. w Outreach and Affirmative Marketing Plan Actions to be taken: 1 Notices and announcements of the availability of the shelter services will be placed in each local newspaper of general circulation, on each radio station, and on each television station within the service area. Such announcements will be made at least twice upon completion of the project. • Presentations about the availability of shelter services and transitional living units will be made to a variety of organizations including but not limited to county departments of social services, managers of subsidized rental housing units, adult literacy groups, mental health centers, and handicapped citizen groups. • Special presentations will be made to organizations which serve developmentally disabled and mentally handicapped citizens, single women head of households, Native Americans, Hispanics, Asians, African Americans and any other minority groups residing in the area. • Presentations on the availability of the project will be made in languages other than English as the need arises. Amounts and Types of Assistance It is the philosophy of Samaritan House to provide more than warehousing of homeless families and individuals. Samaritan House will provide a place to feel safe and secure, to regroup and start over if necessary, to rebuild dignity and self esteem, and provide assistance to realize the dream of self sufficiency and re-entering mainstream society. Page 3 of 6 Samaritan House provides emergency shelter only when there are no reasonable and safe alternatives. The maximum length of stay is 60 days depending on the individual needs and circumstances of each household served. Based on the past experience of operating the shelter facility, the average length of stay is expected to be 1.5 weeks. A daily assessment is done to determine the need for continued emergency shelter. In order to qualify for continued shelter services, residents must shown evidence of active and daily pursuit of employment and/or other services to meet their economic or other needs. Illness or other temporary incapacitation will be considered when assessing the daily effort to gain the means required to obtain transitional and/or permanent housing and meet other basic needs. Length of stay in the transitional living units will be on an annual lease basis with a maximum occupancy period of two years. This lease may be terminated at the discretion of Samaritan House and the tenant if they are able to move on into permanent housing as their economic status improves. Financial Management The current fiscal procedures and practices of Samaritan House will be continued in the financial management of the expanded facility. These procedures include preparation of annual financial statements and tax forms by the Certified Public Accounting firm of Kettinger & La Voie. Daily and monthly accounts are maintained by the Board Treasurer. Monthly financial statements are prepared and reviewed and approved t the monthly board meetings. As a result of the federal and city funding provided to the expansion of Samaritan House, a copy of the annual report will be provided each year to the City of Kalispell. Program Income will be identified in this report and a detailed description of how it was expended back into the operation of the entire project will be provided. The City Council will approve this plan on an annual basis. Management and Staffing The management and staffing of Samaritan House has been provided through volunteer services since 1990, and such service will continue to be used as long as they are provided reliably, effectively, and professionally. For example, annual financial statements and tax forms have been and will continue to be prepared by the Certified Public Accounting firm of Kettinger & La Voie. However, Samaritan House recognizes that it cannot rely on the facility's continued management solely by volunteers, and has budgeted compensation for the current and any future Project Director as well as for relief staff, maintenance, and housekeeping/cooking functions. Staffing costs will continue to be minimized by actively involving the homeless in the upkeep, maintenance, and cleaning of the three -phased facility. The Project Director, Sister June Kenny has over 20 years experience in developing and managing homeless shelters. From 1974 to 1979, Sister Kenny was one of the founders and the first Director of the Poverello Center Homeless Shelter in Missoula. From 1979 to 1989, Sister Kenny relocated to Seattle where she continued to work in homeless shelters and in an infirmary for those requiring 24 hour nursing care. In 1989 she returned to Montana for the express purpose of assisting the Flathead Valley community in addressing the increasing problem of homelessness in the area. That effort led to the establishment of Samaritan House. Sister Kenny has been its Director since its inception in 1990. Under her direction, Samaritan House has gained local and national recognition for its exemplary management and operations. Because it is a working board directly involved in the management of the facility, the experience and Page 4 of 6 H,0m 1` DRAFT -OPERATING PLAN FOK SAMAKH A1N riU U aE t background of the board members are especially pertinent. The following brief biographies of the current board members demonstrate the breadth and depth of its management capabilities. SAMARITAN HOUSE BOARD OF DIRECTORS BRIEF BIOGRAPHIES & MANAGEMENT EXPERIENCE Charles White Chairman: Mr. White is presently owner of White Protection and Financial Services, a health insurance and investment agency serving the Kalispell area. He also owns and operates a small farm. From 1981 to 1983, Mr. White was President and CEO of Kalispell Feed and Grain, Inc., a local agri-business with 25 employees and generating about $4.5 million in sales revenues. From 1975 to 1981 he was Director of Sales for the same business. Prior to that he was a beef cattle rancher on a 200 acre family ranch in Musselshell, Montana. Mr. White was also a past president of the Northwest Montana Association of Life Underwriters and has been a member of the Kalispell rotary Club for about 15 years. Stephanie Gertz, Secretary: Ms. Gertz has had a wide range of both management and human service experience. Currently the owner and operator of an upholstery business, Ms. Gertz has had six years experience in banking, four years experience in drugs and alcohol treatment, and three years of working with computers. Ms. Gertz is also on the Bethany Lutheran Church Council, the Parent Advisory Board of Bigfork Elementary School, and is the treasurer of the local PTA. Dee Boon, Treasurer: Ms. Boon is currently the office manager of a local dental practice. Previously, Ms. Boon had twelve years experience in the banking industry, with increasing levels of responsibility. Ms. Boon's banking experience included but was not limited to supervising teller operations, balancing f bank general ledgers and accounts on a daily basis, performing loan analyses, as well as completing Federal Reserve and other reports. Ms. Boon's education includes completing the Principals of Banking Accounting course through the American Institute of Banking. Bruce Measure: Mr. Measure, a graduate of the University of Montana with a BA in Public Administration and JD in Law, is presently employed with the law Offices of Ambrose G. Measure, serving Montana since 1935. Mr. Measure has served as a state legislator and is currently Judge Pro Tern for the Kalispell Municipal Court. Mr. Measure has also been or currently is a member of the following organizations: Kalispell City Government Study Commission, Flathead Food Bank, Habitat for Humanity's Legal Advisor, Interdisciplinary Border Gizzly Study Team, East Side Forest Practices Committee, and Rails to Trails Board Member of Northwest Montana. David D. Stewart: Mr. Steward completed a BA Degree at the University of Iowa and a BFT degree at the Thunderbird School of International Management. After twenty-five years as an international banker with Bankers Trust Company of New York and the Fleet Financial Group of Providence, R.I., he retired to his hometown of Whitefish, MT where he has become active in community development and service. In addition to serving on the Samaritan House Board, Mr. Steward also chaired the Whitefish Depot Renovation Committee and served as president of the Whitefish Community Development corporation. Winifred Storli: Ms. Storli, a graduate of the University of Manchester, England, with a BA in Education and the University of British Columbia with a MA, ED in Psychology, has had over 30 years teaching experience. In addition, Ms. Storli has been a school psychologist and counselor. Ms. Storli is Page 5 of 6 a member of the National Alliance for Mental Health and the Montana Mental Health Association Board of Directors. Currently, Ms. Storli is the co-owner and manager of a mote and provides all the accounting and bookkeeping functions for the business. Bruce Jellison: Mr. Jellison, with an MS in Electrical Engineering from Montana State University, has been president and owner of the Computer Place, Inc. for the past 16 years. Mr. Jellison developed the business from a one person operation to its current status of 18 employees and sales of $2.2 million per year. Mr. Jellison has also been president and co-owner of modular home sales and construction company, president and co-owner of a fiberglass boat manufacturing and sales business, leader of a team to design military digital computer circuits, and a communications engineer with the U.S. Air Force. Gain Nussbaum: Ms. Nussbaum has a BA degree in Business Administration from the University of Montana. With 20 years bookkeeping experience, she also taught school for ten years and was an auditor for the State of Montana for five years. Currently, Ms. Nussbaum is a volunteer at the Kalispell Regional Hospital, on the Western Montana Mental Health Center Board of Directors, and is a member of the American Association of University Women and the Flathead Alliance for the Mentally Ill. Andree Laird After a five year career as a case worker for state social services, Ms. Laird devoted most of her life to raising her five children. As a retired homemaker, Ms. Laird contributes much of her time as an active volunteer in the community. Ms. Laird's volunteer work includes tutoring children, working I the school and city library and art center, organizing a visiting and companion program at the local nursing home, and organizing a donated Sunday dinner program for the emergency shelter. Flo Agrignola: Ms. Agrignola, a 30 year resident of the Flathead Valley, now owns and manages a hearing aid business with her husband. Ms. Agrignola has had over eighteen years experience in the food services, both private and institutional. In addition, she is a member and past president of the Rollins Womens Club. Stella Mae Lilienthal: Ms. Lilienthal, now retired, was co-owner and treasurer of a statewide insulation contracting business for over twenty years. The business typically had a monthly payroll of about 50 employees. She was in charge of all facets of bookkeeping, payroll, government reports, accounts receivable and payable, trial balances, etc. Linda Smith: Ms. Smith has extensive volunteer services and coordination. Ms. Smith founded a nonprofit organizations, Mothers Embracing Nuclear Disarmament (MEND) and coordinated a 10,000 person "walk for peace." She is on the National Board of Ronald McDonald House Charities. Ms. Smith is in the process of starting a coffee house business in Whitefish. Mike Laabs: As volunteer construction manager and Samaritan House coordinator of the project, a complete statement of qualifications for Mr. Laabs is provided in Appendix. 3 Page 6 of 6