#02 Authorize submittal of contract amendment for lead hazard demonstration grant program with WI Dept of Health Services (File Res. #2011-866)
NEIGHBORHOOD SERVICES MEMORANDUM
December 6, 2011
TO: City Council
FROM: Jennifer Petruzzello, Neighborhood Services Director
SUBJECT: Action on a Proposed Resolution Authorizing the Submittal of an
Amendment to the Lead Hazard Reduction Demonstration Grant Program
Contract between the State of Wisconsin Department of Health Services
and the City of Janesville (File Resolution #2011-866)
Summary
The State of Wisconsin Division of Public Health applied for and received a Lead
Hazard Reduction Grant Program offered through the U.S. Department of Housing and
Urban Development to provide funding for lead hazard reduction activities throughout
Rock and Dane Counties.
In 2011, the City received an allocation of $101,250 to assist in identifying and
controlling lead-based paint hazards in 9 dwelling units. The amount of funding was
increased by $236,250 to assist an additional 21 dwelling units in April of 2011.
The City has received an application from Janesville School Apartments, LLC for a lead
hazard reduction project that would encompass up to 36 units and all exterior and
common areas. As a result, we are seeking an amendment for an additional $200,000
in lead hazard reduction construction funds for this project.
Department Recommendation
The Neighborhood Services Department recommends that the City Council approve File
Resolution #2011-866 authorizing the Submittal of an Amendment to the Lead Hazard
Reduction Demonstration Grant Program Contract between the State of Wisconsin
Department of Health Services and the City of Janesville.
City Manager Recommendation
The City Manager concurs with Neighborhood Services recommendation.
Suggested Motion
I move to approve File Resolution #2011-866 authorizing the Submittal of an
Amendment to the Lead Hazard Reduction Demonstration Grant Program Contract
between the State of Wisconsin Department of Health Services and the City of
Janesville.
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Background
In December 2009, the State of Wisconsin Division of Public Health applied for a Lead
Hazard Reduction Grant Program offered through the U.S. Department of Housing and
Urban Development. The State applied for this grant to provide funding for lead hazard
reduction activities throughout Rock and Dane Counties.
The State has received funding to assist approximately 300 dwelling units throughout
Dane and Rock Counties. An average of $10,250 is budgeted for each dwelling unit.
Initially, the City received an award of $101,250 to assist 9 dwelling units. Due to an
increase in interest in lead hazard reduction grants in the City, we requested, and
received, an additional allocation of $236,250 to assist an additional 21 units. Current
funding is to be in effect through December 14, 2012, and currently all except 2 grants
have been awarded.
The City has received an application from Janesville School Apartments, LLC (the
former Marshall Middle School) for a lead hazard reduction project that would
encompass the interior of up to 36 units, the exterior of all units and all common areas.
As a result, we are seeking an amendment for an additional $200,000 in lead hazard
reduction funds for this project. This project would require a 20% local match, of which
one-half will be paid by Janesville School Apartments, LLC at loan closing. The
remaining one-half will be provided through a Community Development Block Grant
(CDBG) loan to be repaid by Janesville School Apartments, LLC over a twelve (12)
month period. The City would be eligible to be reimbursed for up to $36,000 in
administrative expenses. Additional match will be provided through the value of staff
time, and other State projects.
Analysis:
Participation in the Lead Hazard Reduction Grant Program would bring additional
financial resources to the City of Janesville to address lead hazards in our housing
stock. For the last 5 years, the City has offered a lead hazard reduction grant program
with funding through the Rock County Consortium, and for the past 2 years, we have
been able to offer grants with funding through the Lead Hazard Reduction
Demonstration Grant.
Additional Lead Hazard Demonstration Grant funding would allow us to assist another
36 rental units during this time period and facilitate the removal of lead hazards from the
entire 55-unit apartment complex.
Housing staff is experienced in working to reduce lead hazards. Administratively, this
project would be administered in a very similar manner as our current grant, however,
the larger scope of the project will require a sealed bidding process and compliance with
Davis Bacon prevailing wage rate requirements. The City would be eligible to be
reimbursed for up to $36,000 in administrative expenses for this project and other
projects under the Lead Hazard Demonstration Grant Program.
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Funding for a portion of the local match would come from the CDBG revolving loan
fund. This loan would be established with a one-year repayment schedule. This
schedule is consistent with the repayment of lead grants for rental units and will
increase our program income for the year. This is a comparatively short repayment
period, and will allow the funds to be “recycled” and made available for other housing
projects.
Addressing lead hazards is consistent with the CDBG and HOME Consolidated Plan
and the 2011 and 2012 Action Plan.
The Janesville Historic Commission reviewed a certificate of appropriateness for work to
be completed on and around the windows at their meeting on November 28, 2011 and
unanimously approved the certificate.
The Community Development Authority reviewed the proposal at their July 20, 2011
meeting and expressed their support for the revision to the Grant Agreement to increase
grant funding in an amount sufficient to fund lead hazard reduction activities.
Attachments: Resolution #2011-866
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RESOLUTION NO. 2011-866
A RESOLUTION AUTHORIZING THE SUBMITTAL OF AN AMENDMENT TO THE LEAD
HAZARD DEMONSTRATION GRANT PROGRAM CONTRACT BETWEEN THE STATE OF
WISCONSIN DEPARTMENT OF HEALTH SERVICES AND THE CITY OF JANESVILLE
WHEREAS
, in 2009, the State of Wisconsin applied for and received grant funding under the
U.S. Department of Housing and Urban Development Lead Hazard Reduction Demonstration
Grant Program to identify, evaluate and reduce lead-based paint hazards in housing occupied
by low to moderate income families throughout Rock and Dane Counties; and
WHEREAS
, lead hazard control work is required for all of the housing rehabilitation programs
offered by the City of Janesville and the receipt of Lead Hazard Reduction Demonstration grant
funds would supplement existing funding for housing rehabilitation activities; and
WHEREAS,
in 2010, the City of Janesville received an allocation of $101,250 from the State of
Wisconsin to assist in identifying and controlling lead-based paint hazards in nine (9) eligible
privately owned rental and owner-occupied housing units; and
WHEREAS,
in April of 2011, the City of Janesville received an additional allocation of $236,250
from the State of Wisconsin for an additional twenty-one (21) eligible units; and
WHEREAS,
the City has received an application from Janesville School Apartments, LLC for a
lead hazard reduction project that would encompass up to 36 units and all exterior and common
areas; and
WHEREAS,
the City of Janesville is seeking an additional $200,000 in Lead Hazard Reduction
Grant funding to be used for this project; and
WHEREAS
, One-half of the local match requirement will be paid by Janesville School
Apartments, LLC at loan closing and the other one-half will be provided through a Community
Development Block Grant loan to be repaid by Janesville School Apartments, LLC over twelve
(12) months; and
WHEREAS
, programs to reduce lead hazards are consistent with the City of Janesville 2010-
2014 Consolidated Plan and 2011 Action Plan, and specifically goals to improve the existing
housing stock and promote decent affordable housing; and
WHEREAS
, the Janesville Community Development Authority (CDA) reviewed the proposal at
their July 20, 2011 meeting and expressed their support for a revision to the Grant Agreement to
increase grant funding in an amount sufficient to fund lead hazard reduction activities; and
WHEREAS,
the Common Council of the City of Janesville finds that it is in the best interest of
the City and of benefit to the community to participate in the Lead Hazard Reduction
Demonstration Grant Program.
NOW, THEREFORE, BE IT RESOLVED
by the Common Council of the City of Janesville that
they hereby authorize and direct the City Manager to submit an amendment request on behalf
of the City of Janesville with the State of Wisconsin Division of Public Health to increase the
funding allocation in the Lead Hazard Reduction Demonstration Program; and
BE IT FURTHER RESOLVED
, that the City Manager and/or his designee(s), on behalf of the
City of Janesville, is/are hereby authorized and empowered to negotiate, draft, amend, modify,
review, execute, and enter into additional agreements; record, file, and/or make modifications
and/or amendments to any and all documents, papers, forms, and agreements; and to take
whatever take other actions as the City Manager may determine, from time to time and at any
time, necessary and/or desirable to effectuate the intent of this Resolution and/or the public
good.
ADOPTED:
Motion by:
Second by:
APPROVED:
Councilmember Aye Nay Pass Absent
Dongarra-Adams
Liebert
Eric J. Levitt, City Manager
McDonald
Rashkin
ATTEST:
Steeber
Voskuil
Jean Ann Wulf, City Clerk-Treasurer
APPROVED AS TO FORM:
Wald Klimczyk, City Attorney
Proposed by: Neighborhood Services Department
Prepared by: Neighborhood Services Director