F3. CAP Memorandum of Understanding - Land TrustCity of Kalispell
Charles A. Harball Office of City Attorney
City Attorney 201 First Avenue East
P.O. Box 1997
Kalispell, MT 59903-1997
MEMORANDUM
TO: Doug Russell, City Manager-z
FROM: Charles Harball, City Attorney
Tel 406.758.7709
Fax 406.758.7771
charball@kalispell.com
SUBJECT: Motion to Approve Memorandum of Understanding with
Community Action Partnership to Extend Existing MOU
Regarding the Administration of the Community Land Trust
MEETING DATE: January 19, 2016 — Regular Council Meeting
BACKGROUND: On July 26, 2009 the City entered into a Memorandum of
Understanding with the Community Action Partnership regarding the administration of
grant funds used to establish the Northwest Community Land Trust. That MOU was
extended on May 17, 2011 as more grant funds became available. The MOU currently
before the Council provides a further extension for an additional term to allow for
application for additional grant funds and to administer the program, as required by the
terms of the grant, "for up to twenty years from the date the City's NSP program is
completed." The City is not committing to provide any further funds to the program
through this agreement but may cooperate with any grant applications for funds
available through the NSP program. When such grant application comes forward, the
City Council will then have the opportunity to examine the grant requirements and
make its determination at that time.
RECOMMENDATION: It is recommended that the Council move to approve the
execution of the MOU.
ALTERNATIVES: The Council may offer recommendations to amend the agreement.
SECOND EXTENSION OF
THE MEMORANDUM OF UNDERSTANDING
BETWEEN
COMMUNITY ACTION PARTNERSHIP OF NORTHWEST MONTANA
AND
CITY OF KALISPELL
WHEREAS, the City of Kalispell ("the City") and Northwest Montana Human Resources, Inc.
d/b/a Community Action Partnership of Northwest Montana ("CAP") entered into a
Memorandum of Understanding dated July 26, 2009, for the purpose of establishing the
Northwest Community Land Trust, Inc. ("CLT"); the City's application for Neighborhood
Stabilization Program ("NSP") funds; and CAP's administration of said funds; and
WHEREAS, said funds were received and are being administered by CAP through the CLT; and
WHEREAS, the City and CAP are in compliance with their obligations under the MOU; and
WHEREAS, the terms of the MOU provides that it would expire on June 30, 2011; and
WHEREAS, on May 17, 2011, the City and CAP entered into a written agreement ("the
Extension") extending the MOU to March 30, 2014; and
WHEREAS, the Extension also provided for the City's application for the third phase of the
Neighborhood Stabilization Program ("NSP3") hinds and CAP's administration of said fiinds for
the benefit of the CLT; and
WHEREAS, said NSP3 funds were received and are being administered by CAP through the
CLT; and
WHEREAS, the City and CAP are in compliance with their obligations under the MOU and the
Extension; and
WHEREAS, the City and CAP desire to further extend the MOU.
NOW, THEREFORE, the City and CAP agree as follows:
I. The MOU is hereby extended for an additional term expiring five (5) years after the
Period of Affordability as defined by the NSP program, which may be up to twenty (20)
years from the date the City's NSP program is completed.
2. The MOU cannot be assigned without the prior written consent of the City, CAP and the
Montana Department of Commerce.
DATED this _ day of , 201
NORTHWEST MONTANA HUMAN RESOURCES, INC. DB/A
COMMUNITY ACTION PARTNERSHIP OF NORTHWEST MONTANA
By:ucac-
,
Tracy Naz
Its: Executive Director
THE CITY OF KALISPELL
Doug Russell
Its: City Manager
Thomas T. Tornow, P.C., A
a
309 Wisconsin Avenue, Whitefish, MT 59937
Telephone: (406) 862-7450 Facsimile: (406) 862-7451 Website: www.tornowlaw.com
Thomas T. Tornow, Attorney
tom6E�tornowlaw.com
Sue A. Brown, Office Administrator
sue _ tornowlaw.com
January 7, 2016
Katherine Thompson
Community Development Manager
201 First Avenue East
Kalispell, MT 59901
Dear Ms. Thompson:
Katherine C. Troiano, Paralegal
katherineCa-tornowlaw com
Nicole A. Sliwoski, Legal Assistant
assistant cDtornowiaw.com
Enclosed please find two original Second Extensions of the Memorandum of Understanding
Between Community Action Partnership of Northwest Montana and City of Kalispell with our
client's signature.
We would greatly appreciate it if you would please put the matter on the council's agenda and let
us know what their decision is. If you would like a representative from Community Action
Partnership of Northwest Montana to be present at the meeting, please let us know.
Sinc
TH(
By:
Enclosures
RECEIVED
MEMORANDUM OF UNDERSTANDING JUN i B
BETWEEN THE I CommanttyMMWM""hlp
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:
1. TERM
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.
8. 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
Q4, Z
a&-
Do4bD. Rauthe
Executive Director
Page 3 of 3
Myrt Vebb
Interim City Manager
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-1-
A. Project Build -out Assurriptions,
Year 3
Year 4
Year 5
1 Year 6
Year 7
Year 8
1 Year 9
Year 10
ate e
o
e
Is
a
e
e
e
e
e
a
cumulative unittotais:
0 B
12
iB
24
90
3B
42
48
54
C
Personnel cola: 34% lAnnualizedl 2009
1 2010
1 2011
1 2012
1 2013
1 2014
1 2018
1 2014
1 2017
2019
Salaries Salo let Year)
Pr rom0irsator 411000
0
10,558
13.049
13441
13.844
14,259
14687
15127
18178
18723
FTE: 0% 25% 30% 30% 30% 30%
30%
30%
35% 35
01oevolopment Coordinator 38,0oo
0
0
0
0
0
0
0
0
0
0
FTE: 0% 0% 0% o%
0%
0%
0%
.0%
0%
m Homabuyer/Homeownar Services Coordln 32,000
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%
35%
of MarketingCoordinator 32,00
00
0
0
0
0
0
0
0
4,054
4,175
FTE:
MI Communl Outreach Coordinator 32.000
0
0
0
0
0
0
0
0
4,054
4.176
FTE;
0%
0%
0%
0%
0%
0%
0%
0%
10%
1
m"I Administrative Coordinator 25,000
0
6,438
6,631
6,830
7,034
7 245
8 955
7.687
9.501
9.786
FTE:
0%
26%
- 26%
25%
25%
25%
30%
26%.
30%
('m CAP stall/other ez ttat aea altacltod
24,000
FTE:
0%
.. 0%
0%
0%
0%
0%
0%
0%
0%
Total Salaries
16,995
19,680
27,264
28,081
30,779
35,105
34,621
y 49,974�
51,473
Number of FTEs
0.00
0.60
0.56
0.76
0.75
0.80
0.00
0.85
1.20
1.20
Benefits 25% of total salaries
4,249
4,920
6,816
7.020
7,696
8.776
8.655
12.494
12,868
Total Personnel Costs
0
21,244
24,600
pm
34,079
1 11
35,102
1,9A:
38.473
43,681
43,276
62,468
{ 10 411
64,342
r
Adminisfration & Overhead 35`x of total payroll
7,435
8,810
11,028
12,286
13,466
15,358
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
84,331
86,861
Start-up FFF.JConsultants/legal fees (see aftached)
24,000 7,500
i
Reserve Funds
[operating Reserve
0
5,000
5,000
5,000
5.000
5.000
5,000
5,000
51000
5.000
Capital Asset Fund
0
e.mi
6,0001
81000
6,000
6,000
8,000
61000
6,o00
TOTAL ANNUAL OPERATING EXPENSES
48,000
47,179
44,2091
57,0071
58,3871
62,9391
70,240
69,423
95,331
97,861
Developer Fees from NSP Funds
of value of each unit developed
0
15,600
16,224
16,873
17,54B
0
0
0
0
0
Marketing Fees
1.09L of value of each unh developed
0
7,800
8.112
8,436
8,774
9,125
9.490
9,869
10,264
10,675
Ground Lease Fees GLF)
f25 Inaialmonthly GLF
0
900
11800
4,050
5,400
6,750
8,100
9,450
10,800
12,150
Lease Re -issuance Fees
57 600 Lease re -Issuance Fee
0
0
5,400
7,200
9,000
10,800
12,600
14,400
16,200
Membershl Dues limembers:.
0
25
50
50
60
80
80
130.
75
78
S3S Annual membership dues
0
876
1.750
1,750
2,100
2,100
2,100
2,100
2,625
2,625
Corporate Donors for operations) *1
0.001
1 1
1 1
21
31
31
31
3
3
4
SS,000 Annual ($2,000 afready rec'd20c9)
6,000
5.000
5,000
10,DD0
15,000
15,000
15.000
15,000
15.000
20.000
Other Sources for operations) ft 1
0
525,000 Portion of Mil from Cityll(alispell
0
12,500
12,500
25,D00
25,000
25,000
25,000
25,000
25,000
25,000
$50,000 Porten of Mil from FH Co.
12,500
25,D00
50,000
50,000
50,000
50,000
50,000
50,000
$25,000 Other gout support (W F, CF. Lincoln Co,
etc.
12,500
12500
15,000
20.000
20,000
22,500
25,000
$25,000 NSPAdministration Funding
25,000
25,000
25,000
25,000
0
0
0
0
0
S25,000 Other grants not yet identified
25.000
15,000
15,000
15.000
0
0
Start up mono from City of Kalispell a
1
01
01
01
01
01
01
01
of
0
518,000 One Time
18,000
0
0
0
0
0
0
0
0
0
HOME CHDO Doo er Fee (NMHP,) B
1
0.1
0
0 1
01
01
01
01
0
0
f24,000 One Time
24,000
0
0
0
0
0
0
0
0
0
TOTAL PROGRAM REVENUE
48,uuu
Q,brb
45,3M
77,5UV
U1,022
UU,Vfb,
0
(4.504)
1,177
14,502
22,634
4,036
250
4,597
(17.242)
(11,211)I
a
0
(4,504)
(3,328)
11,176
33,809
37,845
38,095
42,691
25,449
14,238
CLT Budget.xis (0 Burlington Assocfafes in Community Development
6/17/2009 10:20 AM From Lexington Community Land Trust