HomeMy WebLinkAbout09487RESOLUTION NO. 9487
A RESOLUTION APPROVING A MEMORANDUM OF
UNDERSTANDING BETWEEN THE CITY OF PUEBLO, A
MUNICIPAL CORPORATION, AND PUEBLO COUNTY
REGARDING THE FURNACE REPLACEMENT PROGRAM
AND AUTHORIZING EXECUTION OF SAME BY THE
PRESIDENT OF THE CITY COUNCIL
WHEREAS, the City of Pueblo ( "City ") and Pueblo County ( "County ") have
heretofore entered into an Agreement dated June 26, 2000 (the "Agreement ") under which
they formed a consortium for the purpose of receiving certain federal funds and
undertaking housing assistance activities pursuant to the HOME Investment Partnerships
Program, in accordance with the provisions of said Agreement; and
WHEREAS, pursuant to the Agreement and the Consolidated Plan, the City
conducts programs designed to address housing, homeless and supporting needs within
the City, including a rehabilitation loan program under which HOME and /or Community
Development Block Grant ( "CDBG ") funds are loaned to qualifying low or moderate income
persons for the purpose of replacement of defective furnaces in owner- occupied single
family housing (the "Furnace Replacement Program" or "Program "); and
WHEREAS, pursuant to the Agreement and the Consolidated Plan, the County
conducts programs designed to address housing, homeless and supporting needs within
the County, including a furnace replacement program for qualified low and moderate
income persons under which qualified and licensed County employees directly provide
labor and materials for furnace installations; and
WHEREAS, limited availability of heating contractors and personnel in the private
sector, coupled with high demand in the marketplace for such services, has resulted in
both escalating costs for furnace replacements under the City's Furnace Replacement
Program, as well as under a similar program conducted by the County, and delay in
completion of projects under the Program; and
WHEREAS, the City and County desire to maximize the use of HOME funds to
serve as many persons as possible and to operate the Program in the most cost - effective
manner; and
WHEREAS, City and County believe that cost savings for furnace replacements
under the City's Program and under the County's program will be achieved by having
Program participants contract with County for furnace replacements to be performed by
County, with such costs savings benefiting the participants and the Program; and
WHEREAS, the City and County desire to set forth in writing their understanding
concerning the undertaking of such furnace replacements by County;
NOW, THEREFORE,
BE IT RESOLVED BY THE CITY COUNCIL OF PUEBLO, that:
SECTION 1
The Memorandum of Understanding dated January 28, 2002, between the City of
Pueblo, a Municipal Corporation and Pueblo County ( "MOU ") concerning furnace
replacements, a true copy of which is attached hereto and incorporated herein by
reference, having been approved as to form by the City Attorney, is hereby approved.
SECTION 2
The President of the City Council is hereby authorized to execute the MOU on
behalf of the City of Pueblo, a Municipal Corporation, and the City Clerk is directed to affix
the seal of the City thereto and attest same.
INTRODUCED: January 28, 2002
MO
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COUNCIL PERSON
APPROVED: a. `�"'`,`�'�`'
PRESIDENT OF CITY COUNCIL
ATTESTED BY:
1 Y CLERK
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Background Paper for Proposed
RESOLUTION
AGENDA ITEM # lO
DATE: January 28, 2002
DEPARTMENT: HOUSING AND CITIZEN SERVICES / TONY BERUMEN
TITLE
A RESOLUTION APPROVING A MEMORANDUM OF UNDERSTANDING
BETWEEN THE CITY OF PUEBLO, A MUNICIPAL CORPORATION, AND
PUEBLO COUNTY REGARDING THE FURNACE REPLACEMENT PROGRAM
AND AUTHORIZING EXECUTION OF SAME BY THE PRESIDENT OF THE
CITY COUNCIL.
ISSUE
Request approval of a Memorandum of Understanding between the City of
Pueblo and Pueblo County for the Furnace Replacement Program. The
Agreement would allow the County's qualified and licensed employees to provide
labor and materials for furnace replacements to City residents, participating in the
Rehabilitation Program funded through CDBG and HOME Federal funds.
RECOMMENDATION
Approve the Memorandum of Understanding allowing the County to provide to
program participants furnace installations or replacement services.
BACKGROUND
In the City's Owner - Occupant Rehabilitation Program the Housing Rehabilitation
Specialist inspects the properties to determine needed repairs. HUD's Safety
and Soundness and local building code requirements must be addressed prior to
any other work being performed. Under the Program guidelines, the
homeowners must have three bids from licensed contractors. The City and
County in the past few years have seen fewer bids received and increased costs
for furnace replacements. The bids received range from $4,000 - $6,000.
These prices may vary depending on the square footage of the house and
whether the property is a one or two -story home.
This Agreement would allow Program participants to receive furnace
replacement services through the County at a cost of $2,000 per unit. This is a
savings of $2,000 - $4,000. This is a set price, not withstanding the square
footage of the house.
The Program is a loan program and payback of the loan is based on household
income. Some households not only require furnace replacement, but the
upgrading of the electrical system and plumbing systems. The savings is passed
along to the homeowners in a lower loan amount.
FINANCIAL IMPACT
The City Council has already appropriated funds from the CDBG and HOME
Programs for the Owner- Occupant Rehabilitation Program. Under this MOU, the
City would remit $2,000 per unit to the County for furnace replacement work
conducted by their employees. The $2,000 includes the cost of the furnace,
labor, and materials.
Rev. 3/19/01
MEMORANDUM OF UNDERSTANDING
CONCERNING FURNACE REPLACEMENTS BY COUNTY
UNDER CITY'S FURNACE REPLACEMENT PROGRAM
THIS MEMORANDUM OF UNDERSTANDING is made and entered into this 28th day of
January, 2002, by and between the City of Pueblo, a Municipal Corporation (hereafter referred to as
the "City") and Pueblo County, Colorado for and on behalf of its Department of Housing and Human
Services (hereafter referred to as the "County").
1V.V /IlI eI*f'
WHEREAS, City and County have heretofore entered into an Agreement dated June 26, 2000
(the "Agreement ") under which they formed a consortium for the purpose of receiving certain federal
funds and undertaking housing assistance activities pursuant to the HOME Investment Partnerships
Program, in accordance with the provisions of said Agreement; and
WHEREAS, pursuant to the Agreement and the Consolidated Plan, the City conducts
programs designed to address housing, homeless and supporting needs within the City, including a
rehabilitation loan program under which HOME and/or Community Development Block Grant
( "CDBG ") funds are loaned to qualifying low or moderate income persons for the purpose of
replacement of defective furnaces in owner- occupied single family housing (the "Furnace
Replacement Program" or "Program "); and
WHEREAS, pursuant to the Agreement and the Consolidated Plan, the County conducts
programs designed to address housing, homeless and supporting needs within the County, including
a furnace replacement program for qualified low and moderate income persons under which qualified
and licensed County employees directly provide labor and materials for furnace installations; and
WHEREAS, limited availability of heating contractors and personnel in the private sector,
coupled with high demand in the marketplace for such services, has resulted in both escalating costs
for furnace replacements under the City's Furnace Replacement Program, as well as under a similar
program conducted by the County, and delay in completion of projects under the Program; and
WHEREAS, the City and County desire to maximize the use of HOME funds to serve as
many persons as possible and to operate the Program in the most cost - effective manner; and
WHEREAS, City and County believe that cost savings for furnace replacements under the
City's Program and under the County's program will be achieved by having Program participants
contract with County for furnace replacements to be performed by County, with such costs savings
benefitting the participants and the Program.
NOW, THEREFORE, in consideration of the foregoing recitals and mutual covenants and
promises contained herein, the parties agree as follows:
1. Participants in City's Program shall be afforded the option of contracting directly with
County for County to furnish and install replacement furnaces rather than Participants contracting
with a private contractor selected by the Participants after receipt of competitive bids for the work.
Such contract shall be in the form customarily used in City's Program; provided, however, that
County shall not be required to file any payment or performance bond.
2. County agrees that, upon County entering into contract documents approved by City
with Participants, County will undertake furnace replacements in accordance with the terms of such
contract and this Memorandum. County agrees to provide the equipment, materials, labor and
services for at least twelve (12) such furnace installations under the Program, and as many as twenty-
four (24) such furnace installations if requested.
3. County agrees that its charge to Particpants in the Program for furnace installation or
replacement shall be a lump sum amount of $2,000.00 which shall include: obtaining permits from
the Pueblo Regional Building Department; removal and disposal of the old furnace, if any;
furnishing and delivering to Participant's home of a new energy efficient gas fired furnace properly
sized for the home; all labor required to connect the new furnace to existing duct work; and
fabrication and installation of a limited amount of ductwork at the interfaces between the new
furnace and existing ductwork. The lump sum fee does not include labor or materials required or
desirable for: additional electrical service or wiring for the home; installation of gas lines; framing or
carpentry; additional runs of duct; installation or furnishing of drywall, panelling or other wall
surfaces; and asbestos removal and disposal.
4. County shall not commence any furnace replacement work for a Participant in the
Program until and unless a contract has been entered into between the County and Participant which
is approved by City's Director of Housing and Community Development and which sets forth a firm
price for all the work required, including both the lump sum charges for furnace replacement, as set
forth in paragraph 3 above, and the agreed charge for all additional materials and labor required for
the installation which are not encompassed within the lump sum charge for furnace replacement.
5. City's Director of Housing and Community Development and County's Director of
Housing and Human and Human Services are authorized and directed to cooperate in implementing
the intent of this Memorandum.
6. This Memorandum shall become effective as a supplement to the Agreement
immediately upon approval by the respective governing bodies of each of the parties, and shall
terminate on September 30, 2002.
7. Except as modified and supplemented by this Memorandum, all of the provisions set
forth in the Agreement shall continue in full force and effect and shall apply to the conduct of the
Furnace Replacement Program, as modified herein.
IN WITNESS WHEREOF, the parties have entered into this Agreement the day and year first
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written above.
ATTEST: PUEBLO COUNTY, COLORADO
By �. By � . �
Cle he Board chairperson, Board of County Commissioners
ATTEST:
v
CITY OF PUEBLO,
A MUN IPAL CORPORATION
B c
President of the City Council
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