The URL can be used to link to this page

Home My WebLink About04-20-20 City Commission Packet Materials - A3. Resolution 5152 Budget Amendment to Include $296,520 HRDC Grant for Warming Center Improvements and Grant Agreement1 Commission Memorandum REPORT TO: Mayor and City Commission FROM: Kristin Donald, Finance Director Martin Matsen, Community Development Director Tanya Andreasen, Community Housing Program Manager SUBJECT: Resolution 5152 Amending the FY21 Budget to Include Additional Expenditures of $296,520 to the Workforce Housing Fund to fund a request from HRDC to furnish required fire and life-safety improvements to a newly leased property at 2015 Wheat Drive, intended to serve as the Community's Warming Center, and authorize the Interim City Manager to sign a grant agreement with HRDC. MEETING DATE: April 20, 2020 AGENDA ITEM TYPE: Action RECOMMENDATION: Adopt Resolution 5152 amending the FY21 budget to include additional expenditures of $296,520 to the Workforce Housing Fund, funding a grant to the Human Resource Development Council (HRDC) from the City of Bozeman’s Community Housing Fund for improvements to leased property at 2015 Wheat Drive, to be repaid only if HRDC is no longer in possession of the property or discontinues using it as a warming shelter, and authorize the Interim City Manager to sign the grant agreement. SUGGESTED MOTIONS: Motion 1: I move to adopt Resolution 5152 amending the FY21 budget to include additional expenditures of $296,520 to the Workforce Housing Fund. Motion 2: I move to authorize the City Manager to sign the attached grant agreement with HRDC in the amount of $296,520 for improvements to property to be used as a warming center. BACKGROUND: On November 9, 2019, the HRDC submitted a funding request to Director Matsen to furnish required fire and life-safety improvements to 2015 Wheat Drive, a property leased by HRDC, intended to serve as the community’s Warming Center. This facility will serve for 5 years as the 306 2 interim shelter while the HRDC designs, funds, and builds our area’s first permanent year-round homeless shelter. Our community does not presently have a year-round shelter facility. Currently, populations in need are sheltered in two different locations, creating costly and complicated staffing and transportation issues. Improvements to this leased property will include required fire suppression and alarm systems, compliant egress and exit paths, emergency lighting, restroom and shower facilities, and additional improvements described in the grant request. The term of the lease on this property is for five years with an option to extend for an additional five years, and gives HRDC a first right of refusal option to purchase the property at the conclusion of the initial term or extension term of the lease. The City’s Community Affordable Housing Advisory Board (CAHAB) has reviewed the application, and heard from the applicant at its February meeting. The board recommends a no- interest loan. The approved motion from CAHAB is as follows: 08:29:51 AM (00:29:28) MOTION - Having reviewed and discussed the funding request from HRDC, I move to recommend City Commission approval of a no interest loan from Community Affordable Housing Fund in the amount not to exceed $297,000.00; to be paid back upon termination of the lease for the facility, purchase of the facility by HRDC, or conversion of the facility to some other use other than that of an emergency shelter for the homeless. If none of the above loan repayment triggers happens within ten years of the funds being provided to HRDC, then the funds provided will be considered to be a grant and no repayment will be due: Steve Wheeler Although a low or no interest loan program using our Community Housing Funds could be crafted and resourced, the City of Bozeman does not currently have a loan program in place, therefore, a loan is not recommended by staff. Staff drafted the grant agreement so that no repayment would be required unless, within ten years of the date of the grant agreement, HRDC is no longer in possession of the property (either under a lease or by purchasing the property) or is no longer using the property for the purchase described in the grant agreement. This captures the recommendation in CAHAB’s motion, except that purchase of the facility by HRDC within the 10-year period would not trigger repayment. This funding request serves to ensure an interim solution to our community’s lack of year-round shelter for homeless individuals and families. The contribution of City Workforce Housing Funds will be used for necessary fire and life-safety improvements required to make the building comply with adopted safety codes. The facility as proposed will have capacity to serve up to 120 people per night and provide facilities to offer other services during the day. The Workforce Housing Funds granted through this agreement will be returned to the City should the HRDC not purchase the leased property. ALTERNATIVES: As suggested by the Commission. FISCAL EFFECTS: The FY20 budget did not include this project, therefore a budget amendment is required. This would increase spending in the fund by $296,520. FY20 estimated ending cash balance in the Workforce Housing Fund will be decreased from $901,670 to $605,150. 307 3 ATTACHMENTS: - Grant Agreement HRDC Warming Center - HRDC request letter - HRDC budget detail - HRDC proposed improvements - CAHAB minutes February 12, 2020 - Resolution 5152 308 309 310 311 312 313 314 315 316 317 318 319 u "C .c a, .c .... @ 0 a, .c (I.I BUILDING A BETTE COMMUNITY November 8, 2019 Martin Matsen Director of Community Development City of Bozeman 20 E Olive Street Bozeman, MT 59715 Re: Funding Request Dear Mr. Matsen, Please accept this formal request for funding in an amount not to exceed $296,520 to furnish required health and safety improvements to our newly leased property intended to serve as the Community's Warming Center while we work to design, fund and build the area's first year round shelter facility. Health and Safety Improvements will include, but are not limited to: installation of fire sprinkler suppression system, fire alarm system, lever hardware, compliant egress/exit door paths, emergency lighting and exit signs, installation and construction of required restrooms and shower facilities. HRDC has recently negotiated lease terms for this new location to serve as the primary Warming Center location until a permanent facility is constructed. We believe this location will serve Bozeman's shelter needs across all populations for the next 3-5 years. The lease of this facility will increase our annual operating costs by more than $80,000 per year, but will accommodate all shelter functions in one location, eliminating the need to operate, staff and transport guests across two shelter locations and will address our capacity limit at our current Industrial Drive location. The lease terms include an option to purchase at the conclusion of the lease. If HRDC does not exercise this option, it is our intent to work with the City of Bozeman to recover funding related to improvements as is feasible. We hope that you will consider this funding request as an investment in an ongoing partnership with HRDC to provide emergency shelter services for our community. Sine rely, � eateU; President/CEQJ e: hello@thehrdc.org a: 32 South Tracy Bozeman, Montana 59715 p: 406.587.4486 a: 111 South 2nd Ave Livingston, MT 59047 p: 406.333.2537 HRDC BUILDING A BETTER COMMUNITY www.thehrdc.org 320 19'-5" 5' 4' Demolition: Demolition ·Remove decks adjacent to building ·Remove unfinished new framing inside. Construction ·Install Fire Suppression Sprinklers and 4" water service line ·Install Fire Alarm System ·Install interior partition wall(s) ·Install Extensive New Restroom Facilities ·Improve Existing Restroom Facilites ·Install Concrete accessible route from all exit doors to public way ·Install Emergency Illumination and Exit lighting ·Improve and maintain existing elements Target Occupancy after improvements: 120 Density = 92 square feet per guest 29'-6" 60 Bunks 30 Bunkslaundrylaundrymens restroomwomens restroom30 Bunks Staff Desk Staff Desk laundry4'4' 3'-8" 1:12 slope to parking lot 1:12 slope to parking lot 0 6 12 feet Proposed Improvements 2015 Wheat Drive Bozeman, MT Zoned B-2 COS 391, 391A WHEAT COMMERCIAL SUB AMND, S01, T02 S, R05 E, Lot 1, PLAT J-58-B 321 2015 Wheat Drive Improvements qty unit cost extended Division 01 — General Requirement architecture construction document prep - Jeff Thompson ThomBagg Architecture 1 4,500.00$ $4,500 Division 02 — Site Construction Demolition, Interior and Exterior 1 3,500.00$ $3,500 Division 03 — Concrete Slab demo and repair, Exterior Ramps 2620 sf 4.78$ $12,524 Division 04 — Masonry $0 Division 05 — Metals Guardrails 97 lf 55.00$ $5,335 Division 06 — Wood and Plastics Wall Framing 251 lf 28.00$ $7,028 Division 07 — Thermal and Moisture Protection Insulation and Weatherization 11000 sf 1.06$ $11,660 Division 08 — Doors and Windows Door hardware & alarms 8 300.00$ $2,400 Division 09 — Finishes Drywall, finishing, paint 5773 sf 2.85$ $16,453 Division 10 — Specialties $0 Division 11 — Equipment Heat Recovery Ventilator, remove from Industrial Dr. and re-install 1 2,500.00$ $2,500 Division 12 — Furnishings $0 Division 13 — Special Construction Fire Suppresion Sprinklers, Fire Alarm System, 4" service line per IT&M Services 1 69,784.00$ $69,784 Fire Alarm System - Per Nico Systems 1 19,936.00$ $19,936 4" water service line installation - per Trasure State Services 1 14,100.00$ $14,100 Division 14 — Conveying Systems $0 Division 15 — Mechanical/Plumbing Repair of existing, Install of new men's & women's bathrooms, upgrade water heater - 1 124,000.00$ $124,000 Division 16 — Electrical Lighting repair, emergency & exit lighting, exterior lighting 1 2,800.00$ $2,800 $296,520 322 2015 Wheat Drive Improvements qty unit cost extended Division 01 — General Requirement architecture construction document prep - Jeff Thompson ThomBagg Architecture 1 4,500.00$ $4,500 Division 02 — Site Construction Demolition, Interior and Exterior 1 3,500.00$ $3,500 Division 03 — Concrete Slab demo and repair, Exterior Ramps 2620 sf 4.78$ $12,524 Division 04 — Masonry $0 Division 05 — Metals Guardrails 97 lf 55.00$ $5,335 Division 06 — Wood and Plastics Wall Framing 251 lf 28.00$ $7,028 Division 07 — Thermal and Moisture Protection Insulation and Weatherization 11000 sf 1.06$ $11,660 Division 08 — Doors and Windows Door hardware & alarms 8 300.00$ $2,400 Division 09 — Finishes Drywall, finishing, paint 5773 sf 2.85$ $16,453 Division 10 — Specialties $0 Division 11 — Equipment Heat Recovery Ventilator, remove from Industrial Dr. and re-install 1 2,500.00$ $2,500 Division 12 — Furnishings $0 Division 13 — Special Construction Fire Suppresion Sprinklers, Fire Alarm System, 4" service line per IT&M Services 1 69,784.00$ $69,784 Fire Alarm System - Per Nico Systems 1 19,936.00$ $19,936 4" water service line installation - per Trasure State Services 1 14,100.00$ $14,100 Division 14 — Conveying Systems $0 Division 15 — Mechanical/Plumbing Repair of existing, Install of new men's & women's bathrooms, upgrade water heater - 1 124,000.00$ $124,000 Division 16 — Electrical Lighting repair, emergency & exit lighting, exterior lighting 1 2,800.00$ $2,800 $296,520 323 19'-5" 5' 4' Demolition: Demolition ·Remove decks adjacent to building ·Remove unfinished new framing inside. Construction ·Install Fire Suppression Sprinklers and 4" water service line ·Install Fire Alarm System ·Install interior partition wall(s) ·Install Extensive New Restroom Facilities ·Improve Existing Restroom Facilites ·Install Concrete accessible route from all exit doors to public way ·Install Emergency Illumination and Exit lighting ·Improve and maintain existing elements Target Occupancy after improvements: 120 Density = 92 square feet per guest 29'-6" 60 Bunks 30 Bunkslaundrylaundrymens restroomwomens restroom30 Bunks Staff Desk Staff Desk laundry4'4' 3'-8" 1:12 slope to parking lot 1:12 slope to parking lot 0 6 12 feet Proposed Improvements 2015 Wheat Drive Bozeman, MT Zoned B-2 COS 391, 391A WHEAT COMMERCIAL SUB AMND, S01, T02 S, R05 E, Lot 1, PLAT J-58-B 324 Community Affordable Housing Advisory Board February 12, 2020 | 8:00 AM | City Hall Commission Room: 121 N. Rouse Ave A. 08:00:42 AM (00:00:19) Call Meeting to Order & Roll Call Present Were:  Brian Guyer (Ex Officio)  Terry Cunningham (Commission Liaison)  Steve Wheeler  Noel Seeburg  Greg Stratton  Kevin Thane (Chairman)  David Magistrelli  Jody Bartz  Kyla Tengdin  Martin Matsen (Community Development Director) B. 08:01:06 AM (00:00:43) Changes to the Agenda C. 08:01:11 AM (00:00:47) Board Disclosures D. 08:02:03 AM (00:01:40) Public Comment Please state your name and address in an audible tone of voice for the record. This is the time for individuals to comment on matters falling within the purview of the Committee. There will also be an opportunity in conjunction with each action item for comments pertaining to that item. Please limit your comments to three minutes. E. 08:02:35 AM (00:02:11) Minutes for Approval:  12-11-19 Minutes (PDF) o 12-11-19 Meeting Video Link  01-08-20 Minutes (PDF) o 01-08-20 Meeting Video Link 08:02:35 AM (00:02:11) MOTION to approve 12.11.19 minutes: David Magistrelli MOTION SECONDED: Steve Wheeler VOTE: Motion Carried 7-0 08:03:16 AM (00:02:52) MOTION to approve 1.8.20 minutes: David Magistrelli MOTION SECONDED: Greg Stratton VOTE: All in Favor – Motion Carried 7-0 325 F. Action Items 1. 08:03:55 AM (00:03:32) (Continued) HRDC Funding Request for $296,520 to Furnish Required Health and Safety Improvements to Newly Leased Interim Warming Center Location (Heather Grenier)  Staff Memo to CAHAB  Funding Request Packet (Continued from December 11th Meeting)  Additional Materials added to Funding Request: o Proposed Facility Improvements for 2015 Wheat Drive o Wheat Drive Improvements Line Item Budget Detail 08:07:57 AM (00:07:33) Heather Grenier, Director of HRDC, presented the Warming Center funding request. 08:09:34 AM (00:09:11) Ms. Grenier responded to questions from board members regarding lease and facility costs, new services offered (outside of winter season), purchase options after 5 years, property size, and plans for additional facilities. 08:15:44 AM (00:15:21) Director of Community Development, Martin Matsen, clarified that HRDC would be responsible for reimbursing the City of Bozeman for funds received if they did not end up purchasing the property after improvements were made and the lease expired. 08:20:06 AM (00:19:43) Board members discussed populations served, logistical efficiencies, and the value of the property compared to the expense of the project. Chairman Thane clarified that HRDC hopes to have a new facility location within the 5 year lease. 08:28:22 AM (00:27:58) Board members discussed the staff recommendation for the current funding request. 08:29:51 AM (00:29:28) MOTION - Having reviewed and discussed the funding request from HRDC, I move to recommend City Commission approval of a no interest loan from Community Affordable Housing Fund in the amount not to exceed $297,000.00; to be paid back upon termination of the lease for the facility, purchase of the facility by HRDC, or conversion of the facility to some other use other than that of an emergency shelter for the homeless. If none of the above loan repayment triggers happens within ten years of the funds being provided to HRDC, then the funds provided will be considered to be a grant and no repayment will be due: Steve Wheeler 08:30:32 AM (00:30:09) MOTION SECONDED: David Magistrelli 08:30:53 AM (00:30:30) VOTE: Motion Carried 7-0 2. 08:31:11 AM (00:30:47) (Continued) Presentation and Discussion Regarding Disbursement Criteria for the City of Bozeman’s Workforce Housing Fund (Marty Matsen)  Allocation Criteria Draft 326  08:32:19 AM (00:31:56) Allocation Criteria & Application Draft (submitted by Terry Cunningham)  Outside Entity Budget Request Portal Link 08:32:27 AM (00:32:04) Board members discussed the Workforce Housing Fund Allocation Process & Priorities draft submitted by Commissioner Terry Cunningham. Board members discussed striking “opportunities” from the Available Funding Determination statement. (Majority supported this change through an informal vote.) 08:35:05 AM (00:34:42) Board members discussed section: Available Funds & Projected Revenues. The group discussed striking item #3: “Additional Cash-In-Lieu Funds Expected for Coming Fiscal Year.” The change intended to plan around the current fiscal year rather than the coming fiscal year. Board members showed support through an informal vote. 08:38:32 AM (00:38:09) Board members discussed striking items a: “HRDC contracted services” and b: “Others” from section: Projected Expenditures in order to provide more flexibility. Board members showed support through an informal vote. 08:39:31 AM (00:39:08) Board members discussed section: Fund Allocation Priorities. The group discussed in detail modifying the first sentence: “The City of Bozeman will use the following criteria to allocate available funds from the Workforce Housing Fund, in declining order of priority.” 08:41:20 AM (00:40:57) Board member Greg Stratton asked whether funds would be set aside for specific priorities such as down payment assistance or impact fee reimbursement. Mr. Stratton was concerned that funds would not be available for those types of programs if they were free to allocate them elsewhere. 08:46:20 AM (00:45:57) Commissioner Cunningham explained the reasoning behind his draft document and the order in which the priorities were listed. Director Matsen added that the inclusionary zoning ordinance requirements existed for developers whether or not funding was available for impact fee reimbursement or down payment assistance funds were available and that he felt it was the City’s responsibility to try to budget for those uses. The group continued to discuss the intent of the priorities and the allowance for flexibility to use funds in another manner if necessary. 08:56:30 AM (00:56:06) Board member Steve Wheeler suggested dividing funds into percentages used. Director Matsen responded that they purposefully didn’t specify dividing funds in order to allow for flexibility in the criteria. 08:58:57 AM (00:58:34) Chairman Thane asked board members for an informal vote whether they would like to strike “in declining order of priority” vs. leaving the wording as is. Board members voted 4-3 to strike the wording. 327 08:59:30 AM (00:59:07) Board members discussed scoring options for item #2 “Low-Interest Loans or No- Interest Loans” under the Fund Allocation Priorities. Board member Wheeler suggested a minimum score in order for a project to receive funding. Director Matsen shared that City Management is moving toward a one to two time per year process where projects would be reviewed simultaneously, on a set schedule. Board member Jody Bartz supported a minimum score criteria for when multiple projects are being reviewed simultaneously. 09:04:04 AM (01:03:41) Chairman Thane suggested changing the scoring sentence to read: “When multiple projects are before CAHAB, projects scoring the highest in the workforce housing funds scoring process will be given priority.” Board members informally voted and supported the change in wording 7-0. 09:05:37 AM (01:05:14) Steve Wheeler asked where HRDC’s current funding request would fall on the list of criteria priorities to make the point that he didn’t want projects to be excluded because they don’t fit within the listed criteria. The group determined that projects could fall under #7 “Innovative Projects or Ideas” if they did not fit elsewhere. 09:08:26 AM (01:08:03) Informal vote regarding discussed changes. 09:08:50 AM (01:08:27) Board members discussed the Workforce Housing Fund Funding Request Application (page 2 of Commissioner Cunningham’s document) and suggested changes, informally voting on each line item.  09:09:33 AM (01:09:10) Board members discussed moving the question, “Which Community Housing Action Plan strategy action item does this project address,” currently under Workforce Housing Scoring Sheet, to Workforce Housing Fund Funding Request Application in order to allow the applicant to determine the action plan strategy.  09:11:16 AM (01:10:53) Board members discussed modifying the question: “Does this project include deed restrictions or community land trust?”  09:13:37 AM (01:13:14) Suggested rewording: “Indicate how this project ensures permanent or long term affordability” with multiple choices including: land trust, deed restriction, other, and a please explain field. Director Matsen pointed out that the document will be required to clearly indicate whether there is a deed restriction or land trust. (Informal Vote: 7-0)  09:14:35 AM (01:14:12) Board members discussed adding a statement asking “when would the funds requested need to be received in order to optimize the benefit of the funds requested for the project” under the question, “Could the grant loan be split among multiple years?” found on page 2 of the Workforce Housing Fund Funding Request Application. (Informal Vote: 7-0)  09:17:34 AM (01:17:11) Proposed wording change from “$ funding requested” to “Amount of funding requested” on page 1 of the Workforce Housing Fund Scoring Sheet. (Informal Vote: 7-0) 09:18:44 AM (01:18:20) Community Housing Fund Proposal Scoring Methodology document discussion. 328 Chairman Thane discussed his idea for how board members and city staff process scoring for community housing projects. 09:25:40 AM (01:25:17) Special meeting discussion G. Non-Action Items 1. Update on Community Housing Action Plan Presentation to City Commission 1-13-2020  01-13-20 City Commission Meeting Video  Memo from Community Development Director to City Commission 1-13-20 H. FYI/Discussion 1. HRDC Monthly update I. 09:30:11 AM (01:29:48) Adjournment | 9:30 AM For more information, please contact Tanya Andreasen at tandreasen@bozeman.net. This board generally meets the 2nd Wednesday of the month from 8:00AM to 9:30 AM Committee meetings are open to all members of the public. If you have a disability and require assistance, please contact our ADA coordinator, Mike Gray at 582-3232 (TDD 582-2301). 329 RESOLUTION NO. 5152 A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF BOZEMAN, MONTANA, AMENDING FISCAL YEAR 2020 (FY20) WORKFORCE HOUSING FUND BUDGET TO INCLUDE ADDITIONAL EXPENDITURES OF $296,520. WHEREAS, the City Commission did, on the 24th day of June, 2019, after due and proper legal notice, conduct a public hearing and adopt a municipal budget for Fiscal Year 2019- 2020 (Fiscal Year 2020); and WHEREAS, the City Commission did, on the 20th day of April, 2020, after due and proper legal notice, conduct a public hearing on proposed amendments to the municipal budget. NOW, THEREFORE, BE IT RESOLVED by the City Commission of the City of Bozeman, Montana, to wit: Section 1 – Appropriation Additions The City Commission of the City of Bozeman, Montana, does hereby authorize additional expenditures in the Workforce Housing Fund: HRDC Grant for Warming Center Improvements $296,520 Total Additional Appropriations $296,520 Section 2 – Use of Cash on Hand in the Workforce Housing Fund The increased appropriation will be funded with cash on hand in the Workforce Housing Fund. 330 Section 3 Pursuant to Section 7-6-4030, M.C.A., this resolution, upon its passage, shall be in full force and effect on July 1, 2019. Section 4 That should it be found by any court of competent jurisdiction that any section, clause, portion, sentence, word, or phrase of this resolution is deemed to be contrary to any existing law or regulations, that in this instance, it is the intent of the City Commission of the City of Bozeman, Montana, that all other portions, sections, words, clauses, phrases, or paragraphs of this document shall remain in full force and effect. PASSED, ADOPTED, AND APPROVED by the City Commission of the City of Bozeman, Montana, at a regular session thereof held on the 20th day of April, 2020. ___________________________________ CHRIS MEHL Mayor ATTEST: ___________________________________ MIKE MAAS City Clerk APPROVED AS TO FORM: ___________________________________ GREG SULLIVAN City Attorney 331