HomeMy WebLinkAbout11252RESOLUTION NO. 11252
A RESOLUTION APPROVING AND ADOPTING ADMINISTRATIVE PROCEDURES FOR A
WATER SERVICE LINE REPLACEMENT PROGRAM TO ASSIST VERY LOW INCOME
OWNERS OF SINGLE FAMILY RESIDENCES WITH THE REPLACEMENT OF BROKEN WATER
SERVICE LINES
WHEREAS, there is a shortage in the City of Pueblo of safe, decent and sanitary housing,
which is within the financial capabilities of low -and moderate - income families; and
WHEREAS, the elimination of substandard housing and the provision of decent, safe and
sanitary housing for low -and moderate - income families serves public and municipal purposes; and
WHEREAS, it is desirable and there exists a demonstrated need to make funds available to
very low income families to assist in the replacement of broken water service lines; and
WHEREAS, the funds made available for the purpose of implementing and executing the
terms and provisions of this Resolution principally serve public rather than private purposes. NOW
THEREFORE,
BE IT RESOLVED BY THE CITY COUNCIL OF PUEBLO, that:
SECTION 1 _
A Water Service Line Replacement Program, as described in the program description
attached hereto and incorporated herein as is set out in full (herein "Program ") is hereby approved
for administration by the Department of Housing and Citizen Services and the administrative
procedures specified therein are adopted for the administration of the Program.
SECTION 2_
The City may, on an annual basis by appropriate legislative enactment, but without
obligation to do so, make available to the Department of Housing and Citizen Services (herein
"Department ") of the City funds for the purpose of implementing and executing the terms and
provisions of the Program. Department may make application for other available monies for
housing rehabilitation loan and grant programs and shall incorporate such grants or loans into the
Program to further the objectives of the Program.
SECTION 3_
This Resolution and Program shall become effective immediately upon final passage and
approval.
INTRODUCED March 24, 2008
,2�s iia s�
Background Paper for Proposed
RESOLUTION
AGENDA ITEM # 1.5
DATE: March 24, 2008
DEPARTMENT: HOUSING AND CITIZEN SERVICES I ADA RIVERA CLARK
TITLE
A RESOLUTION APPROVING AND ADOPTING ADMINISTRATIVE
PROCEDURES FOR A WATER SERVICE LINE REPLACEMENT PROGRAM
TO ASSIST VERY LOW INCOME OWNERS OF SINGLE FAMILY
RESIDENCES WITH THE REPLACEMENT OF BROKEN WATER SERVICE
LINES
ISSUE
Should the City Council approve administrative procedures for a Water Service
Line Replacement Program, which will allow the Department of Housing and
Citizen Services to provide needed services to very-low income homeowners.
RECOMMENDATION
Approve
BACKGROUND
In December 2007 the City Council approved CDBG funding in the amount of
$15,530 for the Program. The Department receives several requests throughout
the year for assistance with broken water service lines from very low income
homeowners. The Department is currently able to assist those individuals able
to make monthly payments on a low- interest loan; however, there are many
individuals with no ability to take on debt, based on their limited resources. We
routinely turn these individuals down. The approval of this Program will allow us
to serve on a limited basis. the aforementioned.
The Program will be on a "first -come, first - serve" basis and individuals will need
to be referred by the Board of Water Works. Individuals will need to meet the
HUD definition of very low income. At present, a family of four making under
$24,250 is considered very low income. The funds will be provided as a grant,
which is fully repayable if the property is sold or transferred prior to a five -year
period. The latter will be enforced through a promissory note and deed of trust.
At no time will the amount of grant funding exceed $3,000.
FINANCIAL IMPACT
The funds are appropriated and available in CD0815.
CITY OF PUEBLO
WATER SERVICE LINE REPLACEMENT PROGRAM (the "Program ")
INTRODUCTION
The City of Pueblo, Colorado, has incorporated into its U. S. Department of Housing and Urban
Development (HUD) required Consolidated Plan a list of objectives and projected use of funds
for the Community Development Block Grant (CDBG) Funds. Included in the Consolidated
Plan is a component for light rehabilitation and emergency repairs citywide. The objectives to
provide water line assistance to very -low income, single - family, homeowner residents of the
City of Pueblo is two fold: Water service is required by the housing code and is vital to the
function of a home. The urgency of a water line break combined with the unexpected cost of
replacement can far exceed the means of very-low income homeowners. The income of these
homeowners and the lack of disposable income can preclude them from using banks or other
traditional financing methods causing the homeowners to make rash financial decisions or even
to abandon the home. Throughout Pueblo, and especially in older neighborhoods, homes
without water service quickly become a blight to the surrounding neighborhood. Second, the
ability to act quickly will reduce property loss and protect the City's own assets. Ruptured
water lines can drastically impact the City's infrastructure requiring large sections of roads to be
re- paved, settlement of sidewalk, curb and gutter, and compromised road base can produce
additional stress on the main and other utilities located in proximity. CDBG funds are provided
for such purposes by HUD and are governed by Federal regulations and requirements as issued
by HUD and other Federal agencies.
The City of Pueblo certifies to HUD that all CDBG funds will be expended in accordance
with the Federal regulations and requirements governing the program, including, but not
limited to, the program eligibility requirements at 24 CFR 570.202 and the National
Objective requirements at 24 CFR 570.208. The City of Pueblo acting by and through its
Department of Housing and Citizen Services ( "DHCS ") has structured its water line
replacement program to comply with all applicable Federal regulations and requirements.
SECTION 1 - DEFINITIONS
A. Community Development Block Grant Program (CDBG)
The source of funds authorized by Congress and approved by the U.S. Department of
Housing and Urban Development for use in this Program.
B. Low Income
The term given to individuals and households whose total gross income falls below
certain levels established by the Federal government. They are based on HUD estimates
of median family income, with adjustments for family size. In this program, the Section 8
very -low income limits established by HUD will apply.
C. Recipient
The City of Pueblo is the governmental unit receiving Federal funds, and, therefore, is the
recipient.
D. Grantee
The applicant or applicants on title to an owner- occupied, single - family residence who
receives grant assistance to replace the water line through the CDBG funded water line
replacement program.
E. Eligible Family Unit:
One or more persons related either by blood, adoption, marriage, or familial status who
are occupying a permanent residential dwelling unit at the time of application.
F. Owner - occupied residences
Single - family residences, including manufactured homes permanently attached to real
property occupied by the owner thereof. Owner- occupied rental properties are eligible
properties and can include a two -unit structure where the owner lives in one of the units
and rents the other to a tenant. To be eligible, the rental unit must be a legally permitted
unit for a period of at least 5 years. The property owner must sign an agreement that
states that the property will continue to be the primary residence of the owner.
G. New Water Service Line
A new copper pipe, under 1 -1 /2" in diameter that connects a single - family dwelling to the
utility main owned by The Pueblo Board of Water Works for the purpose of delivering
potable water to the dwelling.
H. Existing Water Service Line
An existing galvanized, lead, copper, or plastic pipe that connects a single - family
dwelling or a group of single - family dwellings to a potable water supply which is under
public or private control.
I. Ruptured Water Service Line
Is an existing water service line that is currently leaking, or upon visual inspection, it is
determined by the Board of Water Works that the water service line is corroded to the
extent that the line has less than 12 months of serviceable life remaining.
J. The 2003 UPC
The Uniform Plumbing Code, 2003 Edition, as adopted and amended by the City of
Pueblo, which is the code currently in effect and adopted through ordinance by the City
of Pueblo establishing minimum requirements and standards on plumbing installations to
protect the public health, safety, and welfare.
K. The 2003 IRC
The International Residential Code, 2003 Edition, as adopted and amended by the City of
Pueblo, which is the code currently in effect and adopted through ordinance by the City
of Pueblo establishing minimum requirements and standards for the construction, repair,
and rehabilitation of one to two family dwellings to safeguard the public safety, health,
and general welfare, and safety to life and property from fire and other hazards attributed
to the building environment.
L. Board of Water Works
The utility providing water service to residences within the City of Pueblo. The Board of
Water Works owns and is responsible for maintaining: the utility main, water meter, and
water meter pit. The Board of Water Works has requirements for the installation of new
water service lines, and are detailed in "Water Service Line Installations ", included on
the next page:
WATER SERVICE LINE 1NS "ALLATION
�Praperty tine (�51 AND i 11)
2" x 4" Post w,/ D!ue Water Tope
Typical Street & Sidewolk Section
040ter Stop 48" VIN. DEPTH
Expansion L ono
ro
r2"
4Vc ter Moir
PERMANENT METER INSTALLATION
21„ �T Dirnenafon "A' = 9" for 314" & '4" for t" Wot�t�tn
SPECIAL NOTES.
For details set Qaord Mnfer !ns!Ootiurr Spec;fitetu>ns.
2. AO meter sets shall ce locoAed outside of property, auUdings, driveways,
side. -*s, vehicle parking areas, and other obsbvc!ions.
3. The service line from She aao,d Main to its po. =nt of use on the prooerty,
with exceotiod pf the me €er set, itl the properly owners responsibfility to
iMstail Qnd nlointain. L lJ.aF 31 ME.
ACAO FILE NAME SEr++/3 -1
04l OCT 1988 M.!l.A..
M. Department of Public Works
The City department responsible for maintaining the City's general infrastructure in a safe
and functional condition, which meets requirements of the Clean Water Act, and which is
responsible for seeing that all new public improvements are designed and constructed in
accordance with good engineering standards. The department regulates the excavation
of, and repairs to streets, sidewalks, curbs and gutters. It also requires proper backfill
techniques during the installation of new water service lines through its internal
document, "Standard Construction Specifications and Standard Construction Details"
revised March 2S 2005 and adopted by City Council through Resolution No. 10349 of
same date.
(3/4 „
AND I "1
""Property Line
Z C i.1 x . k'eter (,On
, ' 24' . Ar te
&. Top
Tvo%caf Street & .'' >idewulk Section
ELnr7 Gra je
T8" MIN.
� �� .,L•`�,ii+iz'.rs
n
22" 4fAX.
48" A4;N.
P_Pra
Expansion Loop
21„ �T Dirnenafon "A' = 9" for 314" & '4" for t" Wot�t�tn
SPECIAL NOTES.
For details set Qaord Mnfer !ns!Ootiurr Spec;fitetu>ns.
2. AO meter sets shall ce locoAed outside of property, auUdings, driveways,
side. -*s, vehicle parking areas, and other obsbvc!ions.
3. The service line from She aao,d Main to its po. =nt of use on the prooerty,
with exceotiod pf the me €er set, itl the properly owners responsibfility to
iMstail Qnd nlointain. L lJ.aF 31 ME.
ACAO FILE NAME SEr++/3 -1
04l OCT 1988 M.!l.A..
M. Department of Public Works
The City department responsible for maintaining the City's general infrastructure in a safe
and functional condition, which meets requirements of the Clean Water Act, and which is
responsible for seeing that all new public improvements are designed and constructed in
accordance with good engineering standards. The department regulates the excavation
of, and repairs to streets, sidewalks, curbs and gutters. It also requires proper backfill
techniques during the installation of new water service lines through its internal
document, "Standard Construction Specifications and Standard Construction Details"
revised March 2S 2005 and adopted by City Council through Resolution No. 10349 of
same date.
SECTION 2 — WATER SERVICE LINE REPLACEMENT PROCEDURES
Using materials and methods approved by the 2003 UPC, the 2003 IRC, the "Standard
Construction Specifications and Standard Construction Details" by the Department of
Public Works, City of Pueblo, revised March 28` 2005, and "Appendix G, Water
Service Line Installations" from the Board of Water Works, the water service line
replacement will take place at the existing water tap, usually located in the public right -
of -way and under a city street.
Above the main, a 6'x7' hole shall be excavated to the depth of the water main, and
an additional hole is excavated near the water meter pit. When possible, the existing
water service line shall be pulled out and the new line is pulled in behind the existing
water service line to minimize excavation and disruption to the landscaping. The new
copper line is then connected to the water tap and the water meter on each end
respectively. This process is then repeated from the meter to the home.
2. In situations where the existing service line is not 48" below grade, a directional bore
will be made at the proper depth and a new water service line snaked into place. If a
directional bore is not possible, then as a last resort, a trench will be excavated at a
minimum depth of 48" and at least 5' from the sewer line.
3. For properties with a crawlspace deep foundation, the water service line shall be run
under the footer a minimum 12" below the footer, and properly protected. For
properties with a basement, the water service line shall be run at the minimum depth
of 48" to the foundation, and a hole shall be bored large enough to accommodate an
approved pipe sleeve with a 11 /2 ' clearance around the diameter of the water service
line being installed. After installation the hole shall be sealed watertight, excavations
shall be backfilled and properly compacted at 12" lifts.
4. And finally, the asphalt/concrete shall be repaired in the street or public right -of -way.
If the damage to the street is so extensive that the road base has been compromised,
the affected area shall be excavated, new Type 6 road base shall be brought in 8" lifts
and properly compacted prior to the replacement of the asphalt and in accordance
with Public Works Construction Specifications Article 14.
SECTION 3 - ELIGIBILITY REQUIREMENTS
The Water Line Replacement Program assists homeowners through a five -year forgivable
grant. In order to qualify for assistance, homeowners must be considered very-low income
at or below 50% of the AMI as defined by the U.S. Department of Housing and Urban
Development (HUD), and must meet the conditions set forth in this section. The order in
which applicants receive assistance is on a first -come, first -serve basis, and is contingent
upon available grant funds. The City of Pueblo will review all applications and determine
eligibility based on the following:
A. General:
1. The dwelling unit must need the water service line replaced as determined by the
Pueblo Board of Water Works.
2. The eligible family unit must not have received CDBG funding within the last
(5) years.
3. The applicant must meet the National Objective of benefit to low -and
moderate - income person as described in 24 CFR 570.208(a)(3).
4. The responsibility for administration of the water line replacement program has
been delegated to the Department of Housing and Citizen Services of the City of
Pueblo. ( "DHCS "). DHCS staff decisions regarding eligibility are final unless
an appeal is filed pursuant to Section 12.
B. Property Location:
1. No grants will be made for homes located outside the City of Pueblo. To be
eligible, a property must be: Located in the City of Pueblo;
2. The current value of the property, as shown by the records of the County
Assessor (full value before calculation of assessed value) cannot exceed
70% of the FHA 203 (b) mortgage limit for Pueblo, CO set annually by
HUD.
3. The property must be in conformance /compliance with all current zoning
ordinances, or an agreement must be reached as to when and how
conformance and compliance will be achieved. Such agreements shall
be accepted at the discretion of the Director.
4. The property must not be located inside of a 100 -year floodplain.
C. Requirements Applicable to Applicant
To be eligible for a water line replacement grant, the applicant may not be currently delinquent
in payment of the water utility bill and the applicant must be the owner and occupant of a
single - family dwelling unit within the Pueblo City limits. The applicant must be willing to
continue residing in said residence for a period of five years after the water line has been
replaced. If the applicant sells, transfers title, or fails to occupy the dwelling within the period
of five - years, the applicant shall be in default and subject to the terms set under Section 5.
D. Income
Household income of the applicant must be certified at or below 50% of AMI in
accordance with the most current HUD Section 8 income limits for the Pueblo -
MSA area, in order to be eligible for a grant. Currently the income limits are:
Househol
d
1
2
3
4
5
6
7
8
Size
Income
$18,85
$ 21,550
124 25
$26,950
$29,10
$31,25
$33,45
$35,55
Limit
0
0
0
0
0
0
SECTION 4 - APPLICANT'S INCOME
A. Sources of Funds and Amounts Comprising Applicant's Income.
In the preparation of all reports and analysis required by this paragraph, the
following definition and standards as defined under Section 8 of the United States
Housing Act of 1937, and more fully defined in the HUD Handbook
"Determining Income and Allowances for the HOME Program" shall apply and
be followed by the DHCS to determine the applicant's eligibility for the water
line replacement grant. The following is a listing of the elements comprising
income for purposes of a water line replacement grant:
1. Gross Family Income: The total income, from all sources whatsoever of each
member of an eligible family unit.
2. Applicants may only be natural persons. Income of an applicant includes the
income of the applicant and all members of applicant's family residing in the
home, together with applicant's spouse, even if the spouse does not reside in the
home. The applicant's family includes the applicant and any other person or
persons related by blood, marriage, or operation of law, who share the same
dwelling unit. If ownership of the property rests in more than one person, the
applicant is each owner who shares the dwelling unit. The applicant's income,
therefore, is the sum of the family incomes of all applicants. An applicant's
income is established on an annual basis, at the time of applying for a water line
replacement grant, and includes:
a. The applicant's earnings;
b. Spouse's earnings, and earnings of all other members of the family who
share the household, if the employment of the spouse or other family
member is a definite characteristic of family life;
c. Other income regularly received by the applicant or his family from any
source;
d. Net income from real estate, other than the subject property, and any other
net business income.
3. Exclusions and Adjustments to Applicant's Income.
a. The following exclusions apply to an applicant's income in connection with a
water line replacement grant on a residential property:
i. For purposes of establishing the amount of the applicant's income
that is relevant to the water line replacement grant, there shall be
excluded from the income of each adult family member residing in
the home the income of any dependent child or children, as defined
by the United States Internal Revenue Service. The applicant's
income, adjusted in this manner, shall be related to the income limits
prescribed in the water line replacement program.
ii. The following exclusion applies only to an applicant or family's income
in connection with a water line grant. Title II of the Social Security Act,
42 U.S.C., 401 et. Seq., permits, if certain conditions are met (see
below), the payment of monthly benefits for educational purposes to the
children of an individual entitled to disability or old age insurance
benefits. The income attributed to these benefits should be excluded
from income in determining eligibility for a grant.
SECTION 5 — GRANT & TERM OF GRANT
A. For grants received under this program the following terms will be adhered to:
1. The term for the water line replacement grant is five (5) years, and shall be
forgiven upon completion of the 5 -year term in accordance with program
requirements.
2. The applicant must own and occupy the residence on a full -time basis during
the five -year term. If the applicant fails to occupy the residence as his/her
full -time residence the grant must be repaid and will become immediately
due and payable.
3. During the term of the grant (5 years) interest shall not accrue on the grant
funds unless a default occurs. In the case of default, the balance of the grant
amount shall become due and payable in full, with accrued interest as
provided in the security instruments.
4. If at any time during the five (5) year period, the dwelling unit is sold or
transferred in any manner, the grant must be repaid and will become
immediately due and payable.
5. And, the grantee must meet all other eligibility requirements of the program.
SECTION 6 - NOTE AND DEED OF TRUST
A. Promissory Note
All water line replacement grants shall be evidenced by a Promissory Note; which shall be
executed by the dwelling unit owner ( "grantee ") in a form prescribed by the City of Pueblo.
Grantee shall not be required to repay the note unless default occurs. A Deed of Trust on
the dwelling unit shall secure the Promissory Note. The Promissory Note shall include the
following provisions:
1. The amount of the grant shall be the principal amount on the Note,
2. The default interest rate shall be stated,
3. Upon default, the Note shall provide for late charges,
4. The term of the grantee's obligation to reside in the home shall be set forth,
5. The Note shall provide that all payments under the Note shall be credited first to
late charges, second to interest due, then to principal,
6. The Note shall be due and payable upon sale or transfer of the property for any
reason; in addition the principal balance of all funds advanced shall become
immediately due and payable upon the occurrence of either of the following
events within five (5) years from the date of said note:
i. Transfer of title to the dwelling unit residence, including transfer upon
death of the owner - grantee, unless upon death title shall pass to the spouse
or adult child of such owner - grantee who lives in the residence and who
also is a an eligible and qualified applicant under the Program and request
is made to DHCS to approve such spouse or adult child as an eligible and
qualified applicant within 120 days after the death of the owner- grantee
(Failure of the surviving spouse or adult child to request and obtain such
approval within said 120 day period shall conclusively constitute a waiver
of all rights of such surviving spouse or adult child hereunder); or,
ii. Applicant ceases for any reason to occupy the residence as applicant's sole
and only residence.
B. Deed of Trust
All water line replacement grants, and the Promissory Note, shall be secured by a lien on the
dwelling unit to be repaired evidenced by a mortgage or deed of trust ( "Deed of Trust "). The
Deed of Trust will contain such provisions as the City determines necessary for the protection of
the City's interest, including provision for monthly escrow payments by the grantee to the City
in the amount necessary to pay when due:
1. Property taxes and special assessments, if any; and
2. Fire and extended coverage, flood (if applicable) and any other insurance
premium required by the City to be paid by the owner - grantee.
C. Subordination Policy
The City of Pueblo will consider subordinating its Promissory Note and Deed of
Trust to a position no lower than a third position in the following circumstances:
1. If the owner- grantee is refinancing the original mortgage in order to
obtain a lower interest rate and/or overall mortgage cost. To be
eligible for subordination, a refinancing cannot result in any cash out
to the owner — grantee.
2. If the owner - grantee is borrowing money to make additional
improvements to the dwelling unit. Documentation must be
provided to identify the type and cost of the improvements to be
made and the assurance that the borrowed money will be used to
make additional improvements.
3. If the owner - grantee is securing a loan that includes funds for
additional improvements and for reasons other than home
improvement (eg., debt consolidation, medical expenses, etc.), the
City will only consider subordination if the Pueblo County assessor's
valuation of the property shows that the value of the dwelling unit is
greater than the sum of balances on all the mortgages and liens
against the property, and if the homeowner has been in the home for
at least five years.
SECTION 7 — WATER LINE REPLACEMENT PROGRAM ADMINISTRATIVE
PROCEDURES
A. Applicant Screening
1. The following information related to the individual or household applying for
assistance will be obtained and will be verified in writing:
a. All sources of income for all people residing in the dwelling unit, including
without limitations the following:
i. The earned income and retirement income of the prospective grantee
and his/her spouse and any other adult who will sign the promissory
note or who resides in the dwelling unit;
ii. Any other income received, such as alimony, child support, or public
assistance that is to be counted for qualification of the applicant;
b. All liabilities of applicant including total amount of indebtedness and
monthly payment amounts of all indebtedness, including without limitations
the following:
i. Mortgages, liens, and delinquent taxes against the dwelling unit
property that is to be rehabilitated;
ii. All consumer debt with an outstanding principal balance, including
the amount of monthly payment for each;
iii. All other debt that requires regular monthly payments, such as
spousal maintenance, child support, or extraordinary medical
expenses.
2. The following items related to the dwelling unit will be verified in writing:
a. That title to the dwelling unit is held by one or more of the occupants of the
dwelling unit to be rehabilitated.
b. That all ad valorum property taxes are current. The current value of the
property as shown by the records of the Pueblo County Assessor (full value
before calculation of assessed value) will also be obtained.
SECTION 8 - FUNDING OF INDIVIDUAL WATER LINE GRANTS
A. Source of Funds
Grant funds, whether or not they are supplemented with funds from other sources, shall
be limited to the amount necessary to cover the actual cost of the work to be completed,
but at no time shall the amount of grant funding exceed $3,000.
B. Grant
The City will disburse a water line replacement grant by drawing a check, payable to the
contractor. Upon completion, a check in the amount of 70% of the contract will be drawn to
the contractor with the retainage paid out upon completion of final advertisement.
C. Deposit of Grant
After a water line replacement grant has been approved, an account under the grantee's
name shall be set -up and a budget amount established in the water line replacement account.
D. Management of Water Line Replacement Escrow Account
The City shall maintain a single water line replacement account as the depository for all
water line grants. This account shall be separate and distinct from all other accounts
maintained by the City and shall be for the purpose of depositing and withdrawing water
line replacement account funds.
1. Separate Sub - Account for Each Grantee The City shall establish and maintain a
separate sub - account within the water line replacement account for each grantee
who has received a grant. All receipts and disbursements made for or respect to
each grantee shall be recorded in the account.
2. Disbursements from the Water Line Replacement Account. Disbursements from
the separate grantee account within the water line replacement account shall be
by check made payable to the payee for the following purposes, as may be
appropriate:
a. Making progress and final payments for water line replacement work.
Progress payments, if any, are limited to actual value of the work
satisfactorily completed less retainage;
b. Close out of the separate grantee sub- account by appropriately
disbursing any unutilized funds remaining in the account;
3. Disbursements by the Citv From The Separate Grantee Sub - Account
a. The City, upon receipt of appropriate invoices, and a signed
authorization to pay the grantee, shall draw a check for the payment of
completed and approved work and services. Each check shall be made
payable to the appropriate payee, and the City shall transmit the check
to the payee.
b. Checks shall be delivered, only, after receipt of lien waivers executed
by the payee.
SECTION 9 - CONTRACTING FOR WATER LINE REPLACEMENT WORK
A. Bidding, Payments, and Documents
1. Construction work for water line replacement financed through this grant shall
be undertaken through a written contract between the contractor and the
owner — grantee. The DHCS shall solicit sealed bids, annually, based on unit
pricing, and award the prospective construction work to the lowest responsible
bidder. Upon satisfactory completion of each individual water line
replacement project, the contractor shall be paid 70% of the contract with the
retainage paid to the contractor upon satisfactory completion of all corrective
work, receipt of lien waivers, and final advertising. All work will have at a
minimum a one -year after completion guarantee on all materials and
workmanship.
2. The construction contract will consist of a document signed by the contractor
and accepted by the owner - grantee. It shall contain a bid and a proposal by
the contractor and the general conditions, as well as the specifications for the
work to be performed. Terms and specifications may be included in the
contract or incorporated by reference.
3. Issuance of a Notice to Proceed Order: The construction contract shall
provide that the owner- grantee authorizes the contractor to proceed, and shall
require the start of construction be no sooner than four (4) days from the date
of the contract's signing and no later than seven (7) days from the date of the
contract's signing.
B. City Responsibilities
The contract will be between the owner - grantee and the contractor; although DHCS will
assist the owner- grantee, the City shall not be responsible for the contractor's
performance.
SECTION 10 - COSTS ALLOWABLE IN A WATER LINE REPLACEMENT GRANT
A. Allowable Costs
1. Costs allowable under this program include the costs directly associated with
replacement of the water line and repair of the public right of way as required by
the Regional Building Department, the City of Pueblo Department of Public
Works, the Pueblo Board of Water Works, and administrative costs that are
eligible under the CDBG program.
2. The re- connection of the sprinkler system main valve is an allowable cost, only if
existing.
B. Costs Not Allowable
1. Tap fees, utility charges and assessment fees, or utility usage costs incurred are
not eligible.
2. Costs associated with removal, repair, and/or replacement of fencing are not
eligible.
3. Interior plumbing work beyond the main shut off is not an allowable activity.
4. Costs associated with repair or replacement of landscaping are not eligible.
5. Costs associated with water damage to personal property are not eligible.
C. Work Write -Up
The DHCS shall prepare a work write -up to document the work to be financed with a water
line grant.
SECTION 11— FEDERAL REQUIRMENTS
A. Fair Housing Requirements
Public Law 88 -352 refers to Title VI of the Civil Rights Act of 1964 (42 U.S.C.
§2000d et seq), which provides that no person in the United States shall, on the
ground of race, color, or national origin, be excluded from participation in, be denied
the benefits of, or be subjected to discrimination under any program or activity
receiving Federal financial assistance.
2. Title VIII of Public Law 90 -284 refers to the Fair Housing Act (42 U.S.C. §3601),
which states that it is the policy of the United States to provide, within constitutional
limitations, for fair housing throughout the United States and prohibits any person
from discriminating in the sale or rental of housing, the financing of housing, or the
provision of brokerage services, including otherwise making unavailable or denying
a dwelling to any person, because of race, color, religion, sex, national origin,
handicap (disability), or familial status.
3. Executive Order 11063, as amended by Executive Order 12259, directs HUD to take
all action necessary and appropriate to prevent discrimination because of race, color,
religion (creed), sex, disability, or national origin, in the sale, leasing, rental, or other
disposition of residential property and related facilities (including land to be
developed for residential use), or in the use or occupancy thereof, if such property
and related, facilities are, among other things, provided in whole or in part with the
aid of loans, advances, grants, or contributions agreed to be made by the Federal
Government.
B. Non - discrimination in Proaam Benefit
1. Section 109 of Title I of the Housing and Community Development Act (42
U.S.C. §5309), requires that no person in the United States shall on the ground
of race, color, national origin, disability, or sex, be excluded from participation
in, be denied the benefits of, or be subjected to discrimination under any
program or activity funded in whole or in part with community development
funds made available pursuant to the Act. For purposes of this section, "program
activity" is defined as any function conducted by an identifiable administrative
unit of the recipient, or by any unit of government, sub recipient, or private
contractor receiving community development funds or loans from the recipient.
Specific discriminatory actions prohibited include:
a. Denying any individual any facilities, services, financial aid, or other
benefits provided under the program or activity.
b. Providing any facilities, services, financial aid or other benefits, which are
different, or are provided in a different form, from that provided to others
under the program or activity.
c. Subjecting an individual to segregated or separate treatment in any facility
in, or in any matter of process related to receipt of any service or benefit
under the program or activity.
d. Restricting an individual in any way in access to, or in the enjoyment of, any
advantage or privilege enjoyed by others in connection with facilities,
services, financial aid or other benefits under the program or activity.
e. Treating an individual differently from others in determining whether the
individual requirement or condition which the individual must meet in order
to be provided any facilities, services, or other benefit provided under the
program or satisfies any admission, enrollment, eligibility, membership, or
other activity.
f Denying an individual an opportunity to participate in a program or activity
as an employee.
2. A recipient may not use criteria or methods of administration which have the
effect of subjecting persons to discrimination on the basis of race, color, national
origin, handicap status, or sex, or have the effect of defeating or substantially
impairing accomplishment of the objectives of the program or activity with
respect to persons of a particular race, color, national origin, handicap status, or
sex.
3. A recipient, in determining the site or location of housing or facilities provided in
whole or in part with funds under this part, may not make selections of such site or
location which have the effect of excluding persons from, denying them the benefits
of, or subjecting them to discrimination on the ground of race, color, national origin,
handicap status, or sex; or which have the purpose or effect of defeating or
substantially impairing the accomplishment of the objectives of the Act and of this
section.
4. Section 109 of the Act further provides that any prohibition against
discrimination on the basis of age under the Age Discrimination Act of 1975 (42
U.S.C. §6101 et seq) or with respect to an otherwise qualified handicapped
person as provided in Section 504 of the Rehabilitation Act of 1973 (29 U.S.C.
§794) shall also apply to any program or activity funded in whole or in part with
funds made available pursuant to the Act.
C. Environmental Standards
1. Section 104(g) of the National Environmental Policy Act of 1969 states that the
intent of the policies of the Act and other provisions of law which further the
purposes of such Act be most effectively implemented in connection with the
expenditure of funds under the Act.
2. Regulations governing such expenditures are set forth in 24 CFR Part 58 and
will be complied with in completing this activity.
D. Use of Debarred, Suspended, or Ineligible Contractors or Subrecipients
Assistance under this Program shall not be used directly or indirectly to employ, award
contracts to, or otherwise engage the services of, or fund any contractor or sub recipient
during any period of debarment, suspension, or replacement in ineligibility status under the
provisions of 24 CFR Part 24 of the regulations.
E. Conflict of Interest
The requirements of 24 CFR 570.204(c), 24 CFR 85.36 and OMB Circular
A -110 apply to all procurement of supplies, equipment, construction, and
services by recipients and subrecipients.
2. No member of or Delegate to the Congress of the United States, and no
Resident Commissioner shall be permitted to share in any proceeds of the
grant, or in any benefit arising from the same.
3. No bonus, commission, or fee shall be paid for the purpose of obtaining the
Government's approval of the grant application, or any other approval or
concurrence required by the Government or its designee, to complete the
work, financed in whole or in part with the water line replacement grant.
4. No member of the governing body of the City of Pueblo, and no other public
official of the City of Pueblo who exercises any functions or responsibilities
in connection with the administration of the federally- assisted project or
program, and no other officer or employee of the City or consultant who
exercises such functions or responsibilities, or any relatives thereof or third
parties acting on their behalf, shall be allowed to have any interest, direct or
indirect, in the proceeds of any grant, or in any contract entered into by the
applicant for the performance or work financed in whole or in part with the
proceeds of the water line replacement grant.
F. Use of Grant Proceeds
An applicant agrees, by signing and submitting a grant application, that the grant proceeds
may only be used to pay for costs of services and materials necessary to carry out the water
line replacement work for which the grant will be approved.
G. Completion of Work
An applicant agrees, by signing a grant application, to assure that the water line work shall
be carried out promptly and efficiently, through written contract awarded with the prior
concurrence of the City.
H. Inspection
An applicant agrees, by signing a grant application, to allow inspection of the property by
the City or its designee, all related work and all contracts, materials, equipment, payrolls,
and conditions of employment pertaining to the work.
Records
An applicant agrees, by signing a grant application, to keep such records as may be required
by the City with respect to the water line replacement work.
J. Incorporation
The provisions of subsections I thru L shall be incorporated and included in all grant
documents.
SECTION 12 - GRIEVANCE PROCEDURES
Any applicant for a water line replacement grant aggrieved by a decision of the staff of the
DHCS with respect to eligibility and /or amount of grant may have the decision reconsidered
by another member of the staff of the DHCS (other than the person who made the initial
decision). Such request for reconsideration shall be filed in writing in the office of DHCS
within thirty (30) days after the date of the initial decision. Such reconsideration shall be
concluded within twenty (20) calendar days after receipt of the written request for
reconsideration and the decision based on such reconsideration shall be given in writing to the
applicant within twenty (20) calendar days after receipt of the request for reconsideration. If
the applicant is not satisfied with the decision based on such reconsideration, the applicant,
within twenty (20) days after receipt of notice of the decision on reconsideration, may appeal
the decision in writing to the DI-ICS Director or his designee who shall not have been
involved in either the initial decision or the decision on reconsideration. Such written appeal
shall specify the grounds therefore. The Director or his designee shall conduct a hearing on
such appeal within thirty (30) days after receipt of the written notice of appeal. The decision
of the Director and/or his designee shall be binding upon the applicant and DHCS. Failure of
the applicant to timely file a request for reconsideration and /or an appeal to the Director shall
be deemed a waiver of any right to reconsideration and/or appeal. All applicants shall be
advised of their right to reconsideration and /or appeal.
SECTION 13 - EXCEPTIONS
The provisions of the City of Pueblo Water Line Replacement Program set forth herein are subject
to modification and amendments at time by the City Council of the City of Pueblo and such
authority is hereby reserved to the City Council.