AGENDA#4q

 

MEMORANDUM

 

TO:                  Mayor and Town Council

 

From:            W. Calvin Horton, Town Manager

 

Subject:      Establishment of a Project Ordinance for the 2005-2006 Capital Fund Program for Public Housing Renovations and Resident Services

 

Date:            September 12, 2005

 

 

The attached budget ordinance would establish a project ordinance for the 2005-2006 Capital Fund Program in the amount of $ 601,728.  The project ordinance is based on a Capital Fund Program Annual Statement authorized by the Council and subsequent grant awarded by the U.S. Department of Housing and Urban Development (HUD).

 

Background

 

On April 11, 2005, the Council approved a plan for public housing renovations and resident services.  The Council also authorized submittal of a Plan for the 2005-2006 Capital Fund Program to the U. S. Department of Housing and Urban Development.

 

The 2005-2006 Plan includes site work at the Airport Gardens neighborhood and renovation work in eight of the 11 apartments at the North Columbia Street neighborhood.  These apartments have not undergone comprehensive renovation work since being built in 1968.

 

Discussion

 

Proposed renovations and activities for 2005-2006 Grant Funds as approved by the Council on April 11, 2005 include the following:

 

1.      Complete site work at Airport Gardens.  Previous available funding for public housing renovations has been allocated to renovate the 26 apartments and a portion of the site work. Proposed site work would include the replacement of retaining walls, replacement of sidewalks, replacement of playground equipment, replacement of wooden planters, resurfacing parking lots, replacement of a portion of the storm water drainage system, grading, reseeding, and landscaping.

 

Allocation:  $ 165,646

 

  1. Renovate eight of the 11 apartments at the Columbia Street neighborhood.  The remaining 3 apartments would be renovated as additional funding becomes available.

 

Proposed renovation work would include the replacement of windows and screens, replacement of interior and exterior doors, replacement of furnaces, installation of air conditioning, replacement of stoves and refrigerators, replacement of floor tiles, replacement of bathtub liners and surrounds, bathroom fixtures, plumbing and electrical upgrades, interior and exterior painting, and landscaping.

 

Allocation:  $278,082

 

In addition to the $278,082 included in the proposed budget ordinance for this project, there is $152,000 in the Community Development budget ordinance for proposed North Columbia Street renovations.  Therefore, the total amount of funds available for North Columbia Street renovations is $ 430,082.

 

  1. The cost of the general administration of the Capital Fund Program.  This activity would also include maintenance training and the day-to-day monitoring of the renovation work, preparation of work records, and interviewing workers to verify work responsibilities and pay, as required by HUD.

 

Allocation:  $60,000

 

  1. Allocation for the Department of Housing portion of the cost of debt service on the new Town Operations Center.

 

 Allocation:  $74,000

 

The total amount appropriated from the U.S. Department of Housing and Urban Development for the 2005-2006 Capital Fund Program is $ 601,728

 

Recommendation

 

That the Council adopt the attached Project Ordinance for the Capital Fund Grant Program, consistent with the Program previously approved by the Council.

 

Attachments

 

1.          August 22, 2005 Letter from HUD (p. 5).

2.          Capital Fund Program Amendment to the Consolidated Annual Contributions Contract (p. 6).

3.          2005 Capital Fund Program Annual Statement (p. 7).

 

AN ORDINANCE TO ESTABLISH A CAPITAL FUND PROGRAM (CFP) PROJECT ORDINANCE (2005-09-12/O-7)

 

BE IT ORDAINED by the Council of the Town of Chapel Hill that pursuant to Section 13.2 of Chapter 159 of the General Statutes of North Carolina, the following project ordinance is hereby established:

SECTION I

 

The project authorized is the Capital Fund Project as approved by the Council on April 11, 2005.  Funds are as contained in an Amendment to the Consolidated Annual Contributions Contract between the Town and the U. S. Department of Housing and Urban Development (HUD) dated

August 18, 2005.

SECTION II

 

The Town Manager of the Town of Chapel Hill is hereby directed to proceed with the project within the terms of the Contract document(s), the rules and regulations of the U. S. Department of Housing and Urban Development, and budget contained herein.

 

SECTION III

 

The following revenue is available to complete the project:

 

Capital Fund Program                                     $601,728

 

SECTION IV

 

The amounts appropriated for the project are as follows:

 

Administration                                    $  60,000

Site Improvements                              $123,516

Dwelling Structures                            $320,212

Dwelling Equipment                           $  24,000

Debt Service Payments/TOC              $  74,000

 

Total                                                    $601,728

 

SECTION V

 

The Finance Director of the Town of Chapel Hill is hereby directed to maintain within the Project Fund sufficient specific detailed accounting records to provide the accounting to the U.S. Department of Housing and Urban Development as required by the Annual Contributions Contract and federal regulations.

 

 

SECTION VI

 

Funds may be advanced from General funds for the purpose of making payments as due.  Reimbursement requests should be made to HUD in an orderly and timely manner.

 

SECTION VII

 

The Manager is directed to report annually on the financial status of each project in Section IV and on the total revenues received.

 

 This the 12th day of September, 2005.