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HomeMy WebLinkAbout20080204 - VIII-B-1VIII-B-1 Memo To: Mayor Hicks and City Council From: John Hinzman, Planning Director Date: February 4, 2008 Subject: Amend CDBG Policy for Hardwire Alarms REQUEST The City Council is asked to approve the attached amendment to the Community Development Block Grant (CDBG) Fire Alarm Program Guidelines. The change eliminates the $2,000 limit on individual grants for the installation of hardwire alarms on certain mixed use buildings. The fifty percent CDBG limit on funding individual systems would remain in place. The $2,000 cap was based on a projected cost of $4,500 per system. Initial cost estimates from business owners (especially on larger buildings) have been substantial{y higher. The total estimated demand for CDBG reimbursements would be $85,000. Existing and budgeted CDBG funds along with a $20,000 HRA contribution would cover the anticipated demand. HISTORY On May 7, 2007 the Gity Code was amended to require hard wire alarms for certain mixed use buildings by May 31, 2009. In July, 2007 the City Council adopted a policy for use of federal CDBG funds to offset the cost of alarm improvements. ATTACHMENT • Fire Alarm Program Guidelines City of Hastings Community Development Block Grant Fire Alarm Program Guidelines The City of Hastings has passed an ordinance establishing a monitored fire alarm system in mixed occupancy buildings when one of the occupancies is residential. This ordinance was adopted in an effort to raise the level of fire safety to citizens living in mixed use buildings. In a continuing effort to support businesses and property owners in Hastings, the City of Hastings applied for and received Community Development Block Grant (CDBG) funds for fhe purpose of assisting property owners with the costs to comply with the newly adopted regulation. Specifically, funds will be made available to match property owners' costs by 50% per building. The CDBG funds have been made available to the City of Hastings through the Dakota County Community Development Agency (CDA) on behalf of the federal Department of Housing and Urban Development (HUD). The passing of this ordinance along with providing monetary assistance was seen as a practical and equally safe alternative to requiring sprinkler systems in ail mixed use buildings over 2,000 square feet in size, as was required by the previous ordinance. All existing mixed-use buildings must have a monitored frre alarm system installed by May 31, 2009. The following policies and procedures have been adopted far monitored fire alarm systems undertaken with CDBG dollars in the City of Hastings. These policies are subject to change as recommended 6y fhe Dakota County Community Development Agency andfor the federal Department of Housing and Urban Development. Program Purpose: To provide financial assistance to property owners who are installing a monitored fire alarm system in mixed occupancy buildings when one of the occupancies is residential. Type of Assistance: CDBG Grant. Design Guidelines: The installed fire alarm system must comply with all applicable City of Hastings codes Program Objectives: The Hastings Fire Alarm Improvement Program is undertaken to provide financial assistance for property owners to improve fire safety defrciencies. Projects wilt be chosen for participation in the program based upon a frrst-come, first- served basis until the available funds have been depleted. Revised February, 2068 Eligible Recipients 1. The recipients must individually or in the aggregate have at least 1) a one-third interest in the fee title, or 2) a one-third interest as purchaser in a contract for deed with respect to the structure to be improved_ 2. All individuals having an ownership interest in such structure must join in the application and sign the Grant Agreement with the City, including contract holder. 3. Projects that would result in permanent displacement of either residential ar business tenants will not be fiinanced with CDBG Program funds. Any temporary displacement of tenants resulting from project activities shall be the responsibility of the property owner. Tenants shall be fully informed of the project plans, and the expected impact on them, and shall receive a Notice of Nondisplacement or Displacement, as appropriate, prior to the start of rehabilitation. Property owners will be required to provide relocation assistance to tenants as required under the Uniform Relocation and Real Property Acquisition Policies Act of 1970_ 4. No member of the governing body of the locality, an official, employee, or agent of the local government who exercises policy, decision-making function or responsibilities in connection with the planning and implementatiori of the Fire Alarm Program shall directly or indirectly benefit from this program. This prohibition shall continue for one (1) year after an individual's relationship with the local government ends. Any potential conflicts of interest under Minnesota Statues 412.311 and 471.87-471.89 or Federal Regulations 24 CFR, Part 570, Uniform Administration Requirements, shall be evaluated on the basis of a legal opinion to be requested from the Hastings City Attorney. Program Definitions Program Administrator: The Program Administrator shat{ be the Dakota County Community Development Agency (CDA), 1228 Town Centre Drive, Eagan, MN 55123, Phone (651) 675-4400. Staff shall coordinate all aspects of the Program. Applicant: Any person seeking to obtain fire alarm system assistance under the terms of this Program. Building Official: The Building Officio( for the Program shall be an employee of the City of Hastings and shaft provide technical expertise relating to inspections, construction quality, code compliance and scope of work to be accomplished. Fire Marshal: The Fire MarshaE for the program shall bean employee of the City of Hastings and shall provide additional technical expertise relating to inspections, construction quality, code compliance and scope of work to be accomplished. Project Coordinator: The Project Coordinator for the Program shall be an employee of the City of Hastings and shall provide assistance and management relating to improvement activities. The Project Coordinator is responsible for program marketing, application intake, scheduling of inspections,. preparation of contracts and grant 2 Revised February, 2008 documents, and processing of payment requests. The Project Coordinator serves as the contact person far rehabilitation from application to project close-out and shall be available during regular business hours. Target Buildings: Existing buildings, which have mixed occupancies where one of them being residential, with the following exceptions: 1. A building where all required components of egress are on the level of exit discharge and acceptabte occupancy separation exists which complies with the Minnesota State Fire Code. 2_ A building protected throughout by a supervised automatic suppression system, as approved by the City Fire Marshal. 3. A home occupation business where the business owner is also the primary resident. Eligible Improvements: Costs associated with the installation of monitored fire alarm systems in target buildings as required by Chapter 9, Section 9.83, of Hastings City code. Special Conditions Contractors: Alf code. compliance work undertaken with CDBG funds must be completed by bona fide contractors who are licensed and provide proof of insurance. Davis Bacon Wage Rates: All contracts in excess of $2,000 that will be funded through the CDBG program require compliance with the Labor Standards Provisions of the Davis-Bacon Act. Contractors are to pay their employees the prevailing wage rate as determined by the Department of Labor. Appropriate wage information must be included in the bid specifications and contract documents. The Project Coordinator must approve all payrolls prior to the release of funds. Fair Housing & Equal Opportunity The City of Hastings and the Project Coordinator wilt work affirmatively to ensure that a[I persons, regardless of race, color, creed, national origin, sex, religion, marital status, age, handicap, familial status or reliance on public assistance will be treated fairly and equally for purposes of participation in the Program. Access to program information and materials will not be denied to any person for any reason. The City will encourage the participation of women and minority-owned businesses and local businesses and suppliers who meet Section 3 Criteria. Lead Based Paint The program will conform to the requirements of the Residential Lead Based Paint Hazard Reduction Act of 1992 for any assisted property that contains residential dwelling units. Alt program applicants must provide notification of the hazards of lead based paint to impacted tenants_ The Building Inspector shall inspect for defective paint 3 Revised February, 2008 surfaces at the time the property is being inspected for code compliance. All defective surfaces will be corrected in accordance with the regulations in 24 CFR Part 35 and Minnesota statutes and safe work practices. Unless the work to be completed meets the de minimis levels noted in 24 CFR 35.1350(d}. Data Privacy All information provided by applicants under the Hastings fire alarm program shall be maintained in accordance with the Minnesota Data Practices Act and the City's Subgrantee Agreement with the Dakota County Community Development Agency. Procedures Application Intake Applications will be selected for participation in the program based upon applicability to the program guidelines on a first-come, first-serve basis. Applications will be evaluated based on the following: 1.} Whether the applicant has clear title to the property to be improved. Prior to project approval, the following will be ascertained: a.) Applicant provided proof of title; b.) AH real estate taxes are current; c.) Alf individuals having an ownership interest, including contract holders, have agreed in writing to join in the application; 2.) The extent to which the project meets the program objectives; 3.) The degree of the project's overall impact on the target buiidings_ Projects that involve permanent displacement of either residential or commercial tenants or that are not financially feasible within the constraints of available funding will be eliminated from consideration. Property Inspections Upon determination that a property owner applying for fire alarm assistance is eligible based on the program guidelines, the Building Official or Fire. Marshal shall conduct an inspection of the property to determine the corrective actions necessary for the property to conform to Hastings code standards. Scope of Work The Scope of Work wilt be any improvements deemed necessary by the Project Coordinator for the project to satisfy the intent of the Program. Project Approval The final application will be reviewed by the Hastings City Council. Improvements approved for CDBG funding will be based on there relation to the Target Building, Eligible Recipient, and the ability of the applicant to complete the project with CDBG funds and private funds. Competitive Bidding A minimum of three (3) competitive bids must be solicited and two (2} competitive bids must be obtained for each improvement project the applicant proposes for CDBG 4 Revised February, 2008 funding. Applicants may use any contractor they choose, as long as the contractor meets the requirements listed below. All contractors must provide a Certificate of Insurance Coverage. Contractors must also certify that they will comply with the requirements of the Davis-Bacon Act. These rates will be provided to the applicant as a part of the contractor's instructions. Awarding Contracts The contract will be between the applicant and the contractor. The contract awarded to the lowest bid unless one (1) of the following circumstances occur: 1.) The bid is determined to be unrealistically low and the contractor agrees to withdraw the bid; 2.) The contractor has failed to fo!!ow the procedures as outlined in the instructions to the bidders; 3.) The owner does not want the !ow contractor to perform the work and agrees to pay the difference between the lowest bid and the preferred contractor's bid. 4_) There appears to be collusion between two (2) or more contractors, in which case, al! bids in the questionable trade category wil! be thrown out and different contractor's solicited for bids; and 5.) The contractor fails to bid according to the specifications, and it proves impossible to compare that contractor's bid with the other contractors'. Approval by City Council Once the applicant has accepted a bid, staff will prepare the information for presentation to the Hastings City Council. Upon City Council approval, a Grant Agreement will be signed by the applicant and a designated city official. This Agreement will outline the terms and conditions of the project, including the City's role and the applicant's responsibilities, and any corrective actions to be taken in the event of a dispute. Notice to Proceed A preconstruction conference will be held with the Program Coordinator, the applicant and contractors and subcontractors to ensure awareness and compliance with Davis- Bacon requirements and any other requirements necessary to begin the project. A notice to proceed will be issued after the preconstruction conference. The contractor will normally have one (1) year in which to complete the awarded contract. Change Orders All change orders to the current contract require the approval of the Project Coordinator as well as the signatures of the owner and contractor. Acceptance of Work Interim inspections may be scheduled with the Building Official to monitor work in progress. Final inspection shall be required to ensure that the work has been completed in a satisfactory manner. !n the event of a dispute between the owner and contractor concerning the completion of work, the Project Coordinator shall work with both parties to try to negotiate a satisfactory solution. Disputes that cannot be resolved by negotiation, and that result in legal action by either party to the contract, shall be cJ Revised February, 2008 resolved in accordance with applicable State law. CDBG funds snail not be released to either the owner or contractor until such dispute has been settled. Hold Harmless The owner and the contractor shall indemnify and hold harmless the City of Hastings and the Dakota County CDA and their respective officers, employees, and officials from any damages or liability arising from, or occurring as a result of, the activities funded through this Program. CDBG Payment All CDBG funds will be disbursed by the Dakota County CDA upon authorization by the owner and the City of Hastings. Payments will be made only after all work is completed according to the authorized scope of work and has been accepted by the owner. Funds will be released once all improvements are complete to the satisfaction of the City Building Official and once title ownership, Davis-Bacon wage payments and other requirements are satisfied with the CDA and the City. The Building Official will inspect the final project, and the permit may be closed-out by the Building inspections Department. The permit being closed-out is required before the CDA releases funds. Payment may be made directly to the contractor, or in reimbursement to the owner, upon presentation of paid receipts for approved work. The following must be presented to the Project Coordinator in order to process payment: 1. Billing Statement/ Paid Receipt 2. Sworn Contractor's Statement 3. Completion Certificate 4. Weekly Payroll Reports Private Financing Applicants are responsible for alt costs incurred as a result of not accepting the lowest bid, improvements not within the Scope of this program, and casts above and beyond the avai[abitity of CDBG funds as outlined in the Grant Agreement. Applicants shall contact a lending institution of their choice to arrange financing for their portion of the project. Applicants should request a letter of credit or other suitable documentation firom the lending institution to prove that private funds have been committed. This letter is to be submitted with the completed application. If an applicant is not using a lending institution, other evidence of committed funds must be presented at the time of application. Appeals Process Appeals concerning eligibility for the fire atarm program shall be made in writing and addressed to the Project Coordinator. The Coordinator wilt contact the applicant and attempt to rectify any concerns. A written response will be made within fifteen (15) days. 6 Revised February, 2008