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REDEVELOPMENT AGENCY AGENDA ITEM NO. 15

Meeting Date: November 14, 2006

Subject/Title: Approve Resolution to adopt new Health & Safety Grant Program, to approve Program Procedural Manual and Program Agreements, and to authorize and direct Executive Director, Redevelopment Manager or their designees, to take actions and execute such documents necessary to carry out the Program, and to make non-substantive revisions to the Procedural Manual, Program Agreements and Program Documents.

Prepared by: Peggy Trudell, Sr. Redevelopment Technician
Donald Kwong, Redevelopment Analyst
Gina Rozenski Redevelopment Manager

Submitted by: Howard Sword, Deputy Director

RECOMMENDATION
Approve Resolution to adopt new Health & Safety Grant Program, to approve Program Procedural Manual and Program Agreements, and to authorize and direct Executive Director, Redevelopment Manager or their designees, to take actions and execute such documents necessary to carry out the Program, and to make non-substantive revisions to the Procedural Manual, Program Agreements and Program Documents for Program effectiveness.

PREVIOUS ACTION
On March 5, 2005, the Redevelopment Agency, by resolution, adopted the Five-Year Implementation Plan for the Merged Brentwood and North Brentwood Redevelopment Projects (“Five-Year Plan”). The Five-Year Plan set forth an Agency goal to consider a new Health & Safety Grant Program intended for simple emergency repairs for lower-income home owners that are needed in cases of health and safety but are unaffordable, especially to our senior citizens.

On June 21, 2006, the Redevelopment Project Area Committee reviewed the proposed Health & Safety Grant Program.

On July 6 and August 17, 2006, the Redevelopment Subcommittee provided comments on the proposed Health & Safety Grant Program.

BACKGROUND
The Brentwood Redevelopment Agency is charged with “preserving, improving and increasing affordable housing” within the City of Brentwood.

Program Parameters
Brentwood Redevelopment Agency’s Five-Year Implementation Plan (“Plan”) sets out goals and objectives for the Agency; identifies programs, projects and priorities; identifies financing methods to achieve the goals and objectives; and addresses how the Agency will provide and preserve affordable housing. The Plan includes four principal housing programs: two are existing programs and two are new programs. One of the new proposed programs is a Health & Safety Grant Program (“Program”) that received support from the Agency at the time of the Plan’s approval in March 2005.

The Program is designed to provide very low and low income owner-occupant residents within the City of Brentwood with grant funds to address home repairs to correct dangerous health and safety conditions, code violations and disabled inaccessibility which, without the repair or replacement, would result in imminent unsafe or hazardous conditions for the occupant(s). Similar health and safety grant programs are offered by many redevelopment agencies throughout California.

In many cases, simple emergency home repairs are needed that are unaffordable, especially by our senior citizens. Routine repairs such as replacement hot water heaters, grab bars, wheelchair ramps, leaky roofs, broken window repairs, and smoke detectors can be overlooked or postponed by homeowners when monthly income is used primarily for medical costs and basic needs. The typical profile of applicants are expected to be senior citizens living in older homes such as those located within the Redevelopment Project Areas.

The proposed Program’s eligibility includes the following requirements:
• Owner must occupy the property as a principal residence.
• Household income cannot exceed 80% of median income for Contra Costa County (defined as low income).
• Property must be located within city limits of Brentwood.
• Most dwelling types are included: single family residence, condominium, townhome, manufactured home and mobile homes.

The proposed maximum grant amount for any single household is $3,500, and only one grant is allowed in a fiscal year for any household. Grants in excess of $3,500 in a fiscal year may be approved by Agency staff in cases of serious, numerous, and dangerous existing conditions that require immediate repairs, but in no case shall exceed $5,000. Grants for emergency conditions are not to exceed $10,000 per dwelling unit over a five-year duration.

Eligible repairs include, but are not limited to:

• Hazardous electrical wiring.
• Hazardous plumbing.
• Hazardous HVAC equipment.
• Hazardous roofing conditions.
• Inadequate fire protection.
• Weatherization due to such things as broken windows.
• Replacement of inoperable or non-functioning appliances such as stoves, refrigerators and hot water heaters.
• Disabled accessibility such as grab bars, widening of doorways to maneuver wheelchairs, installation of ramps, and raised toilets.

After determining eligibility, Program staff shall inspect the site related to the requested repair only. With the approval of the owner, Program staff shall develop a work scope, select a pre-qualified contractor, inspect the site for completion and quality of work, and oversee the payment for repair/replacement work.

In cases where Program staff finds the home in need of general rehabilitation above and beyond the parameters of this Program, immediate referrals will be made to the Contra Costa County Neighborhood Preservation Program which provides low-interest and deferred loans for major repair and rehabilitation needs to low-income, owner-occupants throughout the County.

If approved, the Program will begin with staff soliciting the interest of local, licensed contractors to participate. The participation of contractors is necessary for the successful launch of this Program. After pre-qualifying the contractors, staff will communicate the availability of the Program through various community resources and organizations, such as Village Drive Resource Center and Delta Resource Center.

Funding Source
As the Five-Year Plan recommended, the funding source for this Program will be the Agency’s Housing Fund. Community Redevelopment Law mandates that 20% of tax increment be deposited into a separate fund for the strict purpose of providing and preserving affordable housing.

Staff anticipated the possibility that this Program would be approved and included $35,000 in the Agency’s 2006-07; therefore, no budget amendments are necessary if the Program is approved. Staff anticipates that most repairs will be less than $3,500 each, allowing approximately 15-20 eligible households to be assisted each year; less than 2 per month. Current staffing levels in the Redevelopment Division are sufficient to administer this Program.

Prevailing Wages
Staff is recommending this Program require prevailing wages be paid by the pre-qualified contractors. The law is still developing on prevailing wage issues, and the Department of Industrial Relations has not yet defined its own term of “de minimus”. While the grant amount is, by intuition, a minimal amount compared to large public works projects and a legal challenge from labor unions against a grant program with a maximum $3500 payment is remote, staff recommends this Program require contractors to comply with all applicable local, state and federal laws and regulations in performance of work paid from this Program including labor standards, which includes prevailing wages.

Immigration Status as an Eligibility Requirement
The Redevelopment Project Area Committee supports this Program, and recommends the Agency’s approval but with the condition that legal immigration status is added as an eligibility requirement for applicants (3 ayes, 1 abstain, 1 absent). The majority of the Project Area Committee strongly felt that illegal immigrants should not receive public assistance regardless of whether they own their home and pay property taxes. The abstention vote was fully supportive of the Program, but not of the condition.

The Redevelopment Subcommittee reviewed this Program and provided helpful comments and revisions. The Subcommittee unanimously does not support legal immigration status as an eligibility requirement based on their belief that homeowners’ property rights prevail over immigration status.

Redevelopment Staff does not support immigration legal status as an eligibility requirement based on the basic redevelopment tenet of recycling tax increment back to those neighborhoods and property owners that paid property taxes. Tax increment revenues received by redevelopment agencies are property taxes. The re-investment of tax increment by redevelopment agencies is a direct return-to-source mechanism where property taxes are returned to the local jurisdiction where the property taxes were collected. And since the proposed Health & Safety Grant Program is available only to owner-occupants who have paid for city services by paying property taxes, the basic redevelopment purpose is achieved.

After consulting with special redevelopment counsel regarding whether the use of immigration status as a qualification in a local housing program raises issues of equal protection and federal pre-emption, they believe that the Brentwood Redevelopment Agency could use immigration status as a qualification for receiving Agency funds for housing repairs. However, because of lack of precedent and the lack of any existing limiting state law on the subject, the matter is not free from doubt and there is no clear standard.

Recommendation
Approve Resolution to adopt a new Health & Safety Grant Program, approve the Program Procedural Manual and Program Agreements, and authorize and direct the Executive Director, Redevelopment Manager or their designees, to take such further actions and execute such documents as are necessary to carry out the Health & Safety Grant Program, and to make non-substantive revisions to the Procedural Manual, Program Agreements and Program Documents for Program effectiveness.

FISCAL IMPACT
The Health & Safety Grant Program shall be funded by the Redevelopment Agency’s Housing Fund 302 with $35,000 for 2006-07 fiscal year. There are sufficient funds in the Agency’s 2006-07 budget for this Program. The City’s General Fund shall not be used for this Program.

Attachments:
Resolution
Program Procedural Manual (Exhibit A)
Program Agreements (Exhibit B-1 and B-2)

RESOLUTION NO. RA-

A RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF BRENTWOOD ADOPTING ITS NEW HEALTH & SAFETY GRANT PROGRAM, APPROVING THE PROGRAM PROCEDURAL MANUAL AND PROGRAM AGREEMENTS, AND AUTHORIZING AND DIRECTING THE EXECUTIVE DIRECTOR, REDEVELOPMENT MANAGER OR THEIR DESIGNEES, TO TAKE SUCH FURTHER ACTIONS AND EXECUTE SUCH DOCUMENTS AS ARE NECESSARY TO CARRY OUT THE HEALTH & SAFETY GRANT PROGRAM, AND TO MAKE NON-SUBSTANTIVE REVISIONS TO THE PROCEDURAL MANUAL, PROGRAM AGREEMENTS AND PROGRAM DOCUMENTS FOR PROGRAM EFFECTIVENESS

WHEREAS, the Redevelopment Agency of the City of Brentwood (“Agency”) approved and adopted its Five-Year Implementation Plan (“Implementation Plan”) for the Merged Brentwood and North Brentwood Redevelopment Projects (“Merged Project Areas”), as required by Health & Safety Code Section 33490, on March 8, 2005 by Resolution No. RD-97; and

WHEREAS, the Implementation Plan contains specific housing goals and objectives for the Agency, contains specific housing programs to achieve the goals and objectives, contains estimated expenditures for each proposed housing program, and explanations of how the goals, objectives, programs and expenditures will implement the requirements of Health & Safety Code 33334.2, 33334.4, 33334.6 and 33413 (“Housing Requirements”); and

WHEREAS, the Housing Requirements mandate redevelopment agencies to increase, improve and preserve the supply of affordable, lower-income housing inside and outside the Merged Project Areas; and

WHEREAS, a component of the Implementation Plan’s goals was to create a Health & Safety Grant Program, and in order to implement the Implementation Plan, the Health & Safety Grant Program component has been designed to provide very low and low income owner-occupant residents within the City of Brentwood with grant funds to address home repairs to correct dangerous health and safety conditions, code violations and disabled inaccessibility which, without the repair or replacement, would result in imminent unsafe or hazardous conditions for the occupant(s); and
WHEREAS, Agency staff have worked to design and draft a Health & Safety Grant Program Administrative Procedures manual (the "Procedural Manual") that describes the procedures necessary to implement the Program; contractor and owner agreements (“Program Agreements”); and general administrative documents necessary to implement and administer the Program such as contractor pre-qualification package, income verification forms, and grant applications (“Program Documents”); and

WHEREAS, the purpose of the Procedural Manual, Program Agreements and Program Documents is to provide uniform procedures, administration and documents for use by Agency staff and the public and to ensure consistency and clarity in the implementation of the Health & Safety Grant Program; and
WHEREAS, the Project Area Committee and the Redevelopment Subcommittee have reviewed and commented on the proposed Health & Safety Grant Program; and
WHEREAS, the Agency desires to adopt the proposed Health & Safety Grant Program, which assists owner-occupied households earning up to 80% of the Area Median Income and located within the City of Brentwood with grant funds to address home repairs to correct dangerous health and safety conditions, code violations and disabled inaccessibility which, without the repair or replacement, would result in unsafe or hazardous conditions for the occupant(s).
NOW, THEREFORE, THE REDEVELOPMENT AGENCY OF THE CITY OF BRENTWOOD DOES HEREBY RESOLVE AS FOLLOWS:
1. Adopts the Health & Safety Grant Program.
2. Approves the Program Procedural Manual, attached hereto as Exhibit A.
3. Approves the use of the Program Agreements in connection with the Program, attached hereto as Exhibit B.
4. Authorizes and directs the Executive Director, Redevelopment Manager or either manager's designee to employ the Procedural Manual in the implementation of the Health & Safety Grant Program; to execute the Program Agreements and any documents necessary to implement the terms and provisions of the Health & Safety Grant Program, and to make any non-substantive revisions approved by the Agency Counsel that are consistent with the intent of the approved Program.
5. Further authorizes the Executive Director, Redevelopment Manager, or either manager’s designee to take all actions necessary to administer the Program, including the revision, preparation and execution of other implementing Program Documents including but not limited to income verification forms, grant application forms, and pre-qualification package for contractors.

PASSED, APPROVED AND ADOPTED by the Redevelopment Agency of the City of Brentwood at a regular meeting held on the 14th day of November 2006 by the following vote:
Exhibit A

REDEVELOPMENT AGENCY OF THE CITY OF BRENTWOOD

HEALTH & SAFETY GRANT PROGRAM
PROCEDURAL MANUAL

AGENCY BOARD OF DIRECTORS

BRIAN SWISHER, CHAIR

ANNETTE BECKSTRAND ROBERT A. BROCKMAN
ANA B. GUITERREZ BOB TAYLOR

PROGRAM MANAGEMENT

DONNA LANDEROS, EXECUTIVE DIRECTOR
HOWARD SWORD, DEPUTY DIRECTOR
GINA ROZENSKI, REDEVELOPMENT MANAGER
DONALD KWONG, SENIOR REDEVELOPMENT ANALYST
PEGGY TRUDELL, SENIOR COMMUNITY DEVELOPMENT TECHNICIAN

JULY 2006
TABLE OF CONTENTS
PAGE
I. INTRODUCTION TO PROGRAM 1

II. ADMINISTRATION 2
A. Summary of Responsibilities 2

III. PROGRAM TERMS 4
A. General Grant Terms 4
B. Terms and Conditions Specific to Assisted Projects 6
C. Limit to Cost of Repairs 7

IV. APPLICATION PROCEDURE 7
A. Initial Screening 7
B. Application Intake 8
C. Site Inspection 8

V. ELIGIBILITY DETERMINATION 9
A. Project Selection 9
B. Income Limits 9
C. Owner Notification of Agency Action 9
D. Verification Requirements 10
E. Work Write-Up 10

VI. REPAIR/REPLACEMENT STANDARDS 11
A. Life Threatening or Safety Repairs 11

VII. CONTRACTOR SELECTION 12
A. Pre-Qualified Contractors 12
B. Contractor Selection 12
C. Notice to Proceed 13

VIII. CONSTRUCTION MANAGEMENT 13
A. Inspection Procedures 13
B. Payments ` 13
C. Change Orders 14
D. Dispute Resolution 14
E. Closeout 14
F. Warranties and Guarantees 14

IX. GRANT MANAGEMENT
A. Monitoring Requirements 14
B. Change in Occupancy 14

X. APPEALS PROCEDURE 15

XI. PROGRAM EVALUATION AND AUDIT PROCEDURES 15
A. Evaluation by Program Participants 15
B. Annual Audit 15

SECTION I

INTRODUCTION TO PROGRAM

The purpose of this manual is to provide a reference guide for Redevelopment Agency of the City of Brentwood (Agency) staff and others interested in the standard procedures for processing, supervising and monitoring grants under the Agency’s Health and Safety Grant Program (Program). Annual Program allocation shall be determined pursuant to the Agency’s budget process and in conformance with the Agency’s Five Year Implementation Plan.

Program Objectives

To provide very low and low income owner-occupant residents within the City of Brentwood with grant funds to address home repairs to correct dangerous health and safety conditions, code violations and disabled inaccessibility which, without the repair or replacement, would result in imminent unsafe or hazardous conditions for the occupant(s).

General Description

Grants are available for very low and low income homeowners for health and safety repairs and replacement and disabled accessibility.

After determining eligibility, Program staff shall inspect the site related to the requested repair only. Program staff shall not be responsible to inspect the site for general deficiencies and hazardous conditions related to the home’s major components and envelope. With the approval of the owner, the Program staff shall develop work specifications, select a pre-qualified contractor, inspect for completion and quality of work, and oversee the payment for repair/replacement work. Repairs must be authorized by the Program staff before the start of work.

The Agency may choose to outsource any and all functions of the Program.

In cases where Program staff finds the home in need of general rehabilitation above and beyond the parameters of this Program, immediate referrals will be made to the Contra Costa County Neighborhood Preservation Program which provides low-interest and deferred loans for major and minor repair and rehabilitation needs.

Scope of Guidelines

The scope of these guidelines is limited to minor health and safety repair, replacement projects and disabled accessibility needs funded by Agency funds.

SECTION II

ADMINISTRATION

The Agency Board of Directors is responsible for determining Program policies related to the level of assistance provided to clients of the Program and the Program’s scope. The Agency staff administers the Program, and the determination of the Agency’s Deputy Director is final on all matters related to the functions of the Program and the decisions by Program staff.

A brief synopsis of each phase of administering the Program and who is responsible for completion of the activity is as follows:

A. SUMMARY OF RESPONSIBILITIES

Listed under each activity is a general description of what the activity entails and who is responsible for the completion of the activity.

Activity Responsibility

INITIAL CONTACT

1. Outreach development, implementation and Program staff
associated functions.

2. Initial contact by applicant or other Program staff
community resource/organization.

3. Add to waiting list, if any. Program staff

QUALIFICATION OF APPLICANT

1. Initial contact and determination of applicant’s Program staff
qualifications according to Program’s eligibility
criteria and guidelines.

DETERMINATION OF PROJECT VIABILITY

1. Site visit and inspection of property for requested City Building Inspector &
repairs and replacement items or disabled Program staff
accessibility needs.

2. Prepare Work Scope for identified repair and Program staff
replacement items or disabled accessibility
needs.

3. Applicant will sign work scope and agreement, Applicant
allowing contractor and Program staff reasonable
access to property to inspect and complete repairs.

Activity Responsibility

SELECTION OF CONTRACTOR

1. The pre-qualified contractor list shall be used Program staff
and if contractor next on the list is unavailable,
the next pre-qualified contractor shall be contacted
until a pre-qualified contractor is available to
complete the emergency repair/replacement.

2. Notice to proceed. Program staff

3. Notify applicant of selected contractor and Program staff
coordinate date and time of repair.

REPAIR/REPLACEMENT PERIOD

1. Contractor obtains necessary permits, if any. Contractor

2. Contractor begins and completes work. Contractor

3. Site inspection to determine acceptability and City Building Inspector
completion of work.

PAYMENT AUTHORIZATION

1. Contractor submits invoice. Program staff

2. Homeowner is contacted to confirm work completion Program staff
and satisfaction.

3. Payment authorization approval. Program staff

4. Payment is sent directly to contractor. Program staff

PROJECT CLOSEOUT

1. Evaluation form provided to applicant. Program staff

2. Evaluation form received and results tabulated. Program staff

SECTION III

PROGRAM TERMS

A. GRANT GENERAL TERMS

Funds are provided on a first-come, first-serve basis following receipt of a completed application and Agency staff determination of eligibility. The maximum grant amount for any household is $3,500 in the Agency’s fiscal year (July 1 to June 30), and only one grant is allowed in a fiscal year for any household. Grants in excess of $3,500 in a fiscal year may be approved by Agency staff in cases of serious, numerous, and dangerous existing conditions that require immediate repairs, but in no case shall exceed $5,000. Grants for emergency conditions are not to exceed $10,000 per dwelling unit over five-year duration. If there exists a situation where the full grant limit of $3,500 will be used for disabled accessibility and/or emergency repair purposes, and the applicant would like other non-emergency repairs done as well, the additional repairs will not be funded by the Program. In such cases, Program staff shall refer the applicant to the Contra Costa County Neighborhood Preservation Program for additional financial assistance.

An owner must allow the project to begin no later than one month from date of approval (or the start of a new fiscal year if the approval of the project is contingent on the approval of funds for the new fiscal year). Otherwise, the monies will be placed back into the pool for other projects in line for consideration to be funded.

Nonprofit, for profit and governmental entities/organizations are excluded from receiving Program grants.

1. Program Requirements

a. To Qualify:
The total combined household gross income of occupants of a household proposed for Program assistance must be at or below 80% of the Contra Costa County median income, adjusted for family size, as determined and published annually by California Department of Housing and Community Development.

b. Repair/Replacement Standards:
Housing repair/replacement assistance shall be performed according to the City of Brentwood Building Codes. Repair/replacement assistance funded under this Program will be limited to modest design and materials, and standard construction methods.

c. Lead-Based Paint Hazard Abatement:
In compliance with the requirements of HUD’s Lead-Based Paint Regulations (24 CFR, Part 35), the use of lead-based paint is prohibited. Houses constructed after January 1, 1978, projects that do not disturb paint, and emergency actions are exempt from the lead-based paint requirements. As such, the majority if not all emergency repair/replacement work performed under this Program shall be exempt from lead-based paint requirements. In the few cases where existing paint must be disturbed for the emergency repair to occur, applicants and occupants of these units will receive a notice regarding lead paint hazards from the Agency.

2. Eligible Activities

Grants will be made for eligible repair/replacement as specified on the staff-prepared Work Scope. Within the allowable grant maximum, the Work Scope shall include eligible activities necessary:

a) To correct Life Threatening hazards or to correct emergency health and safety conditions that create a dangerous and hazardous environment including, but not limited to:

1. Inadequate sanitation associated with failing well and septic systems.
2. Hazardous electrical wiring.
3. Hazardous plumbing.
4. Hazardous HVAC equipment.
5. Hazardous roofing conditions.
6. Inadequate fire protection and equipment such as lack of or inoperable smoke detectors.
7. Weatherization such as broken windows and doors
8. Replacement of inoperable or non-functioning appliances such as stoves, ovens, refrigerators, and hot water heaters. (does not include repair of appliances.)
9. Asbestos testing, removal and disposal when primary eligible repair requires testing, removal and disposal.

b) To meet disabled accessibility objectives, the following home modification items for disabled accessibility may be eligible activities for disabled and elderly individuals with physical impairments:

1. Widening of doorways.
2. Replacement of door knob with lever or octagonal.
3. Installation of sliding doors.
4. Installation of grab bars and hand rails.
5. Installation or repair of ramps and lifts.
6. Correction of inappropriate floor coverings.
7. Altered bathtub or shower.
8. Altered toilet.
9. Light switches lowered.
10. Installation of ball bearing drawers.
11. Removal of other material and architectural barriers.

c) Ineligible Items

1. Acquisition of land.
2. Purchase and/or installation of furnishings and or fixtures which are personal and not real property (not an integral structural fixture, such as a window air conditioner, microwave or a washer or dryer). In rare cases, window air conditioner may be considered an eligible action if medically prescribed.
3. Creation of a secondary-housing unit attached to a primary unit.
4. Luxury items, i.e. hot tubs, kennels, swimming pools, or saunas, etc.
5. Items that exceed the definition of modest design and/or exceed the specifications for materials and construction techniques.
6. Labor costs for homeowners to repair their own property.
7. Other items as deemed inappropriate by the Agency under the criteria set forth herein.

3. Hold Harmless Agreement

Applicants for assistance shall be required to execute a Hold Harmless Agreement prior to the initial inspection of the housing unit. The purpose of the Hold Harmless Agreement is to release the Agency and City from all responsibilities arising from or in consequence to Agency’s participation in the Program. The Hold Harmless Agreement includes indemnification of the Agency and City for not addressing all identified and unidentified code deficiencies or health and safety hazards through the Program due to extenuating circumstances such as limited financial assistance. The responsibility for repairing any code deficiencies or health and safety hazards beyond what is offered by the Program shall be the sole responsibility of the owner. In appropriate cases, the Program staff shall refer the owner to the Contra Costa County Neighborhood Preservation Program which provides low-interest, deferred loans for major and minor rehabilitation needs to qualified applicants.

B. TERMS AND CONDITIONS SPECIFIC TO ASSISTED PROJECTS

1. Eligible Properties

a. Single family housing, condominiums, town homes, manufactured homes and mobile homes that are owned fee simple title, or with a 99 year lease interest, are eligible.

b. Property must be located within the city limits of Brentwood.

2. Other Eligibility Requirements

a. The owner must occupy the property as a principal residence. Occupancy is required during the time assistance is provided.

b. Upon completion of repair/replacement, there are no deed restrictions imposed by the Agency on the property.

3. Eligible Repair/Replacement Costs

Hard Costs: Actual repair/replacement costs associated with Eligible Activities described in Section III.A.2

Demolition Costs when part of a project.

Utility re-connection costs when part of a project.

Soft Costs: Building permits, plans and drawings. Reasonable and necessary costs incurred by owner to stay a maximum of two nights in a local motel in cases where the identified condition jeopardizes the health and safety of the occupant(s) shall be paid by Program only upon prior approval of the Program staff. Meals or other out-of-pocket expenses associated with motel stay are ineligible for reimbursement by Program.

C. LIMIT TO COST OF REPAIRS

The extent of repairs made to a structure is dependent on both the general availability of Program funds and the established grant limits. In instances where the cost of repairs exceed the funding permitted under the Program, the execution and cost of completing work items beyond what is addressed by the Program is the sole responsibility of the property owner. In these cases, Program staff shall refer the owner to the Contra Costa County Neighborhood Preservation Program. The Program, Agency and City shall be removed from all responsibility to address work items beyond what is afforded directly with Program funds.

SECTION IV

APPLICATION PROCEDURE

A. INITIAL SCREENING PROCEDURE

Upon request by a potential client, Program staff will conduct an applicant screening process by telephone or in person. The applicant screening process will enable an initial determination to be made regarding eligibility of the household, the property, and the desired repair/replacement activities.

During the initial screening, Program staff shall:

1. Determine if an interpreter is needed;

2. Request cursory information from the owner to determine preliminary eligibility of the household, the property, and the desired repairs;

3. Explain to the owner what the successive steps of the application and repair/replacement processes, how long they take, and what the owner's role is in each;

4. Inform the owner that there is no guarantee of approval for their grant application;

5. Inform the owner that construction cannot begin until a Notice to Proceed is issued;

6. Brief the owner regarding pre-qualified contractor selection guidelines; and

7. Ask the owner to submit a completed application packet and necessary verification to the Program staff. Staff shall assist in completing the application on behalf of applicant when needed.

B. APPLICATION INTAKE

1. Application Review Process

a) The application is logged in, date stamped, and assigned a client number.

b) The application will be reviewed for completeness and any deficiencies will be noted. Based on application, Program staff shall determine eligibility of household, the property, and the desired repair/replacement activities.

c) A phone call shall be made to the applicant advising of eligibility approval and next steps, or requesting the need for additional information or eligibility verifications required (See Section V - Eligibility Determination).

d) Program staff shall make an appointment for site inspection of requested emergency repairs/replacement work by a City Building Inspector after the application has been determined eligible for the Program.

C. SITE INSPECTION

After the owner's preliminary eligibility is established, the feasibility of repair at the property must be established. The Work Scope is a descriptive list of specific activities to be undertaken in the course of the project. With the assistance of Program staff, the City Building Inspector will:

1. Make an appointment date and time to visit and inspect the property. (Determine if an interpreter is needed.)

2. Complete an inspection of the requested emergency repair/replacement work.

3. Develop repair/replacement description immediately after inspection, and deliver description to Program staff to prepare the Work Scope.

4. When inspecting the property, the City Building Inspector shall make an informal inspection regarding excessive repairs, condition of structure and owner’s needs to determine whether the owner should be referred to the Contra Costa County Neighborhood Preservation Program for consideration of a rehabilitation loan.

SECTION V

ELIGIBILITY DETERMINATION

A. PROJECT SELECTION

In general, persons seeking Program grants will be processed on a first-come, first-serve basis.

Upon initial review by Program staff of the owner and project qualifications and a preliminary feasibility determination, the project will be processed by Program staff in order of date of completed application. However, there will be certain exceptions to the first-come, first-served rule:

1. Properties which has been previously repaired will not be eligible for immediate processing, unless

a. Another serious life/safety repair or replacement is needed that will not exceed $10,500 maximum grant in five years; or

b. A workmanship problem exists with prior work and is not holding up to Program Standards.

2. Properties with a life threatening condition will be given priority (see Section VI. A. Life Threatening Repairs).

3 The limitation of available funds may result in lower-cost projects being given priority, particularly if more units occupied by low income units can benefit.

B. INCOME LIMITS

In order for a project to qualify for a grant, the household income cannot exceed eighty percent (80%) of the median income for Contra Costa County, adjusted for family size, as published annually by California Department of Housing and Community Development. Annual income guidelines are available upon request from the Program staff.

Applicants with excess of $11,000 in liquid assets are not eligible for the Grant. This will be verified through submittal of the applicant’s most recent bank statement.

C. OWNER NOTIFICATION OF AGENCY ACTION

1. A phone call shall be made to the applicant advising of eligibility approval and next steps.

2. Owners that do not receive approval shall receive a written notification of the decision regarding their application and a statement of the appeals process.

3. Decisions to deny funding to projects may be appealed. See Section X for Appeals Process for eligibility-related disputes.

D. VERIFICATION REQUIREMENTS

The Program staff will review applications for the following basic information:

1. Verification of income and liquid assets.
2. Property ownership.
3. Repair/Replacement cost estimate.
4. Other relevant project information.

The following documents shall be obtained to verify eligibility and adherence to the grant approval process and committed to each grant file:

1. Household incomes to be documented by tax returns, employer verification of income forms, and/or public agency/legal documents as appropriate (including but not limited to paycheck stubs, 1040's, Social Security, certified evidence of alimony/divorce settlements, evidence of interest income.)
2. Liquid assets shall be verified by a copy of the most recent bank statement for all accounts held by applicant.
3. Property ownership to be verified by property tax bill or copy of Grant Deed.

Program staff reserves the right to disqualify applications upon evidence of intent to submit fraudulent information or other illegal or false practices on the part of applicant.

E. WORK SCOPE

The Work Scope is the central management document for the project. Among its specific objectives are:

1. To assign a priority of life threatening and health and safety deficiencies, not over-all general property improvements;

2. To assure mutual understanding regarding work to be performed between the homeowner/applicant and the Program;

3. To serve as a basis for identifying the requested scope of work to the selected pre-qualified contractor;

4. To serve as a basis for the contract between the Agency and the contractor and to relate that contract to the Program's goals;

5. To serve as a checklist in reviewing work performed;

6. To honor claims for materials and performance; and

7. To serve as a dispute resolution instrument.

SECTION VI

REPAIR/REPLACEMENT STANDARDS

The property repair/replacement standards for this program shall consist of:

• The City of Brentwood Building, Electrical, Mechanical, Plumbing, Fire and Housing Codes.

• The City of Brentwood Zoning Ordinance.

The purpose of the Program is to address properties that contains a housing condition (or incipient condition) that is either a menace or hazard to the continued occupancy, safety, or health of the occupants or to the safety or health of the public, and therefore requires expeditious repair.

The following are commonly used repair/replacement standards that will be used as guides for repair/replacement under this program.

A. LIFE THREATENING REPAIRS

This standard is used to define the most urgent health and safety repairs, such as unsafe plumbing or wiring.

Life threatening hazards are those causing an immediate threat to the life of an individual. Such hazards may include, but are not limited, to:

• Sagging structural parts of a house (e.g., porch, roof, stairways), which are likely to collapse in the immediate future if not supported.

• Electrical conditions which are likely to result in a fire or threaten human life in the immediate future, including overloaded circuits, hazardous fixtures, switches, outlets, or wiring;

• Plumbing repairs, which involve exposed sewage, supply lines which are leaking; inoperable water heaters;

• Mechanical system repairs which involve conditions likely to result in a dwelling fire or leakage of gas which could cause serious injury; and

• Other conditions which could result in an explosion or situation seriously affecting a life in the immediate future.

B. HEALTH & SAFETY REPAIRS

Health and safety hazards are those causing deteriorated or deficient features of the structure. Such deficiencies include, but are not limited, to:

• Defective energy or weatherization devices.

• Defects in electrical, plumbing and HVAC devices.
• Inadequate fire protection.
• Unsafe entrance and exit facilities.
• Disabled accessibility needs.
• Deteriorating or deficient structural conditions, including crumbling foundations, dry rot, termite damage and roof repairs.
• Inadequate appliances, restricted to ovens, stoves and refrigerators (does not include repair).
• Other housing code deficiencies that meet the purpose of the Program.

SECTION VII

CONTRACTOR SELECTION

A. PRE-QUALIFIED CONTRACTORS

Program staff shall develop a list of pre-qualified contractors to be used as the Program’s preferred contractors. Program staff will first solicit the interest of Brentwood contractors before opening the preferred contractor list to non-local contractors. Interest shall be solicited whenever the list reaches a minimum of four contractors. Program staff shall verify each contractor's qualifications and good standing with the State Contractors' Licensing Board. Each pre-qualified contractor shall be required to hold a City of Brentwood business license.

Pre-qualified contractors shall comply with City of Brentwood insurance requirements and name the Agency and City, their officers, employees, agents and volunteers as additionally insured. Pre-qualified contractors shall provide to Program staff a copy of State Contractor’s License, City of Brentwood business license, Performance of Work Contract, an insurance certificate and insurance endorsements.

The use of subcontractors is prohibited under the Program. The Program requires contractors to comply with all applicable local, state, and federal laws and regulations in performance of work paid from this Program including labor standards. Contractors will be notified that work under the program may be subject to prevailing wage requirements for the Contra Costa labor market area as set by the California Department of Industrial Relations. The Agency has the right, upon not less than seventy-two (72) hours from issuance of notice, at all reasonable times, to inspect the books and records of the Contractor pertaining to the project as pertinent to the purposes of prevailing wages.

B. CONTRACTOR SELECTION

Staff will prepare a descriptive Work Scope. Program staff shall rotate selection of a contractor based on availability and expertise to complete the project in a timely manner, and dependant on the urgency of the repair/replacement activity. Should the contractor be unavailable for the project, Program staff shall contact the next pre-qualified contractor on the list until a pre-qualified contractor is available to complete the emergency repair/replacement as identified in the Work Scope.

Any one contractor will not be allowed to work a new project if that contractor is currently in the process of undertaking two other projects for the Program, unless one of the two projects will be completed prior to the start of the new project, or another contractor is unavailable.
The Work Scope shall be provided to the selected pre-qualified contractor. The Program staff reserves the right to disqualify proposals upon evidence of collusion with the intent to defraud or other illegal practices upon the part of the selected contractor.

The Program staff will re-review the contractor’s business and contractor’s license before the Notice to Proceed to ensure that the contractor is eligible to participate.

C. NOTICE TO PROCEED

The Notice to Proceed shall include the following:

1. Work Scope, making sure both the owner and contractor understand that only items in the Work Scope will be accepted and paid for under the grant (unless there is an approved "Change order");

2. Explain that no additional work is to be performed without a Change Order approved by the Program staff;

3. Emphasize contractor responsibility for purchasing permits and calling for inspections; and

4. Specify the agreed upon "start date" and gives an agreed upon number of calendar days, thereafter for completion of the job.

5. Reminder that work performed is subject to prevailing wage requirements.

SECTION VIII

CONSTRUCTION MANAGEMENT

A. INSPECTION PROCEDURES

1. Upon completion of work, contractor shall notify Program staff which shall make arrangements for the repair work to be inspected by the City Building Inspector for compliance with specifications set forth in the Work Scope and for verification of quality of work.

2. Work not performed to specification will not be accepted.

3. City Building Inspector shall verify with Program staff that the Building Department has completed its final inspections, signed off on the job, and authorizes payment.

4. The project file will include a record of all inspections and any findings.

B. PAYMENTS

1. Contractor submits payment request to Program staff.

2. Disbursement Request is prepared by Program staff.

3. Disbursement of funds is issued by the City Finance Department.

C. CHANGE ORDERS

No changes may be made in the Work Scope unless prior approval is obtained in the form of a Change Order signed by Program staff and the City Building Inspector. The Change Order must contain:

1. Description of modifications;

2. Change in proposed price;

3. Description of how additional costs (if any) will be covered by further grant funding; and

4. Certification of cost reasonableness by the City Building Inspector;

D. DISPUTE RESOLUTION

Program staff and City Building Inspector will assist in mediating construction related disputes between the owner and contractor, the Agency and the contractor or the owner and the Agency. See Section X for Appeals Process.

E. CLOSEOUT

Upon construction completion, the Program staff shall review grant files for complete conformance to standards required by the Program. Program staff shall send an evaluation form to applicant to measure customer satisfaction and Program’s goals and objectives.

F. WARRANTIES AND GUARANTEES

The contractor must guarantee all work, materials, and workmanship for a minimum of one year from the date of inspection by the City Building Inspector. Where materials or subcontracted work are covered by an extended warranty, copies of the warranty must be provided to the owner during project closeout. The owner shall make requests for warranty repairs in writing to the contractor.

SECTION IX

GRANT MANAGEMENT

A. MONITORING REQUIREMENTS

The Program staff is required to monitor compliance with the terms of the grant and general program requirements such as occupancy and income certification.

B. CHANGE IN OCCUPANCY

If occupancy changes for an owner during the course of the project, the owner must notify Program staff within seven (7) calendar days. Program staff shall make arrangements to stop contractor work.

SECTION X

APPEALS PROCEDURE

Objections by the applicant or the contractor to policy, procedure or method of operation will be handled in the following manner:

General disputes on matters related to aspects of eligibility between the applicant and Program staff will be administered by the following procedure:

a. Applicant submits written appeal within fifteen calendar days following notification of the Program staff’s decision regarding their application. Request of appeal should state over-riding reasons to amend the earlier decision;

b. Applicant will be notified in writing within seven calendar days of the Program staff’s decision on the appeal;

c. If applicant contests the decision on appeal, the matter will be reviewed by the Agency’s Deputy Director. For the purposes of administrative remedies the Deputy Director will render a final decision on the issues of eligibility under appeal.

General disputes on matters related to aspects of construction between the owner and the contractor, the Agency and the contractor, or the owner and the Agency, will be administered by the following procedure:

a. Program staff and City Building Inspector will assist in mediating construction related disputes between the owner and contractor, the Agency and the contractor or the owner and the Agency. If mediation is unsuccessful, then:

b. Matters of dispute shall be made in writing by the objecting party or parties within 30 calendar days from the date of final site inspection by City Building Inspector;

c. A meeting will be held at the Redevelopment Agency offices between the Redevelopment Manager or designee, and the disputing parties in an effort to reach an agreement;

d. Finally, if the dispute remains unresolved, the matter will be referred to the Agency’s Deputy Director, who will attempt to facilitate a reasonable accord for final resolution. For the purposes of administrative remedies the Deputy Director will render a final decision on the issues of construction under appeal.

Failure to properly file a written appeal within time frame allowed for eligibility and construction matters shall constitute a waiver of owner’s right to the appeals process.

SECTION XI

PROGRAM EVALUATION AND AUDIT PROCEDURES

A. EVALUATION BY PROGRAM PARTICIPANTS

Program performance will be monitored and evaluated. Owners of individual projects will be given an evaluation form for rating services provided under the Program. Overall Program performance will be evaluated based on timely implementation of the Program and progress towards any established milestones. Program evaluation forms shall be included with each project file. Results of the project evaluations will be reported to the Agency Board of Directors on an annual basis.

B. ANNUAL AUDIT

Brentwood Redevelopment Agency adheres to State approved standard audit procedures on an annual basis. Audit reports, prepared by certified public accountants, provide a public record of expenditures and summary of findings and recommendations.

Exhibit B-1

REDEVELOPMENT AGENCY OF THE CITY OF BRENTWOOD
HEALTH & SAFETY GRANT PROGRAM
PERFORMANCE OF WORK CONTRACT

Submit Insurance Certificates and Invoices to: Redevelopment Agency, 150 City Park Way, Brentwood, CA 94513.
Date:_____________________________ (City Clerk to complete)
Contract No._______________________

Contractor:________________________________________________________________________________________

Redevelopment Agency, herein called “Agency”, and the above-named contractor, hereby agree as follows:

1. Contractor shall, at its own expense and assuming all risks in any way connected therewith, perform the following described work, and shall furnish all labor, equipment, and materials required therefore:__________________________________________________________________________________________________________________________________________________________________________(the “Work”).

2. Contractor shall commence performance hereof when directed by Agency representative, and shall complete the same within (10) calendar days.

3. All drawings, papers or specifications annexed or referred to herein and the general conditions on the reverse side shall be deemed a part of this Contract.

4. As full consideration for performance hereof, Agency will pay Contractor the following amount which shall be inclusive of all taxes incurred in performance hereof: $ . Payment(s) to the Contractor shall be Net 30 days, after receipt of acceptable invoice and acceptance of work.

5. Notwithstanding Section 2 above, Agency may terminate this contract with or without cause upon three (3) days written notice to the Contractor. Upon such termination, Agency shall owe to Contractor payment only for work performed prior to termination of the contract.

6. The Agency has the right, upon not less than seventy-two (72) hours from issuance of notice, at all reasonable times, to inspect the books and records of the Contractor pertaining to the project as pertinent to the purposes of prevailing wages.

Executed this ______ day of ________ 2006.

Contractor: Redevelopment Agency
of the City of Brentwood:

By:_________________________________ By:_____________________________
Donna Landeros, Executive Director

Title:________________________________ By:_____________________________
Margaret Wimberly, Agency Secretary

Approved as to form:

By:_____________________________
Damien Brower, Agency Counsel

GENERAL CONDITIONS

1. Contractor is an independent contractor, and all persons employed by Contractor in connection herewith shall be its employees and not employees of the Brentwood Redevelopment Agency (“Agency”) in any respect.

2. Contractor shall indemnify and defend Agency against all suits, actions, loss, damage, expense and liability for injury or harm to persons or property or for claims against the Agency, City of Brentwood, their Officers, employees and agents resulting from, arising out of, or in any way connected with the performance of the Contract, including the use by Contractor of any Agency furnished equipment, excepting only such injury or harm as may be caused solely by the fault or negligence of the Agency.

3. Contractor shall, during performance hereof, maintain the following insurance in types and amounts shown below and with insurers satisfactory to the Agency:

Coverage Minimum Amounts and Limits

a) Workmen’s Compensation Statutory requirements at location of work
b) Employer’s Liability To extent included under Workmen’s Compensation policy
c) General Liability for bodily injury, property
damage and wrongful death $1,000,000 each occurrence
d) Comprehensive Automobile Insurance $500,000 each occurrence for bodily injury
$250,000 each occurrence for property damage
$500,000 each occurrence for combined single limit

All coverages shall apply to the indemnity agreement in paragraph 2 above but shall not serve as a limitation to the indemnity in any way. Prior to performance of any work, Contractor shall furnish Agency with Certificates of Insurance as evidence of the above required insurance naming Agency, City of Brentwood, their Officers, employees and agents as additional insured and such Certificates shall provide for ten (10) days written notice to Agency prior to cancellation thereof.

4. All workmanship and materials shall be first class in every respect, and shall be subject to inspection and approval by Agency. Contractor guarantees its work hereunder to the extent set forth herein. Neither acceptance of the work by Agency nor payment shall relieve Contractor from liability under the indemnity clause or any of the guarantees or warranties contained or implied herein.

5. Contractor shall comply with Agency jobsite procedures and regulations and with all applicable local, state and federal laws, rules and regulations, and shall have a Business License to conduct business in the City of Brentwood. All work shall be carried out during normal Agency working hours unless specifically agreed to in writing by Agency. Contractor shall at Agency request, replace any incompetent, dishonest, or uncooperative employee.

6. Contractor shall promptly pay all claims of persons or firms furnishing labor, equipment or materials used in performing the work hereunder. Agency may, as a condition precedent to any payment hereunder, require Contractor to submit satisfactory evidence of payment and releases of all such claims. If there is any evidence of such unpaid claim, Agency may withhold any payment until Contractor shall furnish such evidence of payment and release and shall indemnify and defend Agency against any liability or loss arising from any such claim.

7. Any subletting or assignment of the Contract, by operation of law or otherwise, without the prior written consent of Agency shall be void.

8. Agency may, at any time, direct in writing additions, deletions or changes to all or any part of the work, and Contractor agrees to perform such work as changed. If any such change causes an increase or decrease in the cost of or in the time required to perform such work, Contractor shall submit detailed information substantiating such claims. At the sole discretion of Agency an equitable adjustment shall be made to price or time of performance, or both, and the Contract shall be modified accordingly.

9. Contractor shall at all times conduct all operations under the Contract in a manner to avoid risks of bodily harm to persons, damage to any property and fire. Contractor shall be solely responsible to take all precautions necessary and continuously inspect all work, materials, and equipment to discover, determine and correct any such conditions which may result in any of the aforementioned risks.

10. The Agency reserves the right to access and audit the Contractor’s records for a period of four (4) years after payment of any invoice.

11. It is the policy of the Agency that in connection with all work performed under this Contract, there be no discrimination against any employee engaged in the work because of race, religion, color, sex or national origin, and therefore the Contractor agrees to comply with applicable Federal and California laws including, but not limited to, the California Fair Employment Practice Act.

12. In the event that any action is pursued upon this Contract, the party against whom a judgment of a court or arbitration is rendered agrees to pay the other party an amount equal to the reasonable value of the legal services performed in his or its behalf in such action and the reasonable costs of bringing such action.

13. In accordance with Public Contract Code Section 7106, the Contractor is required to execute a Non-Collusion Affidavit in the form attached to the Special Provisions. Contractor shall submit the executed Affidavit to the Agency with the signed Contract.

14. By execution of the Contract, or any subcontract awarded by the Contractor, the Contractor or any subcontractor offers and agrees to assign and hereby does assign to the Agency all rights, title, and interest in and to all causes of action such Contractor or subcontractor may have under section 4 of the Clayton Act (15 USC section 15) or under the Cartright Act (Chapter 2 of Part 2 of Division 7 of the Business and Professions Code, commencing with section 16700), arising from purchases of goods, services, or materials pursuant to this public works contract or subcontract. This assignment shall be made and shall become effective upon execution of the Contract.

15. Entire Contract. This Contract, together with any other written document referred to or contemplated by it, along with the purchase order for this Contract and its provisions, embody the entire Contract and understanding between the parties relating to the subject matter of it. In case of conflict, the terms of the Contract supersede the purchase order. Neither this Contract nor any of its provisions may be amended, modified, waived or discharged except in a writing signed by both parties.

Exhibit B-2

Redevelopment Agency of the City of Brentwood
Scope of Work
Date

Applicants Name
Project No.

Scope of Work Date

Applicants Name:
[List Name]
[Project No.]

Project Location:
[List Address,etc.]

Inspection findings:
[Detail findings from initial inspection related to the approved repairs.]

Scope of approved repairs:
[Detail the general terms and conditions for services to be provided to the applicant.]

Assigned Contractor:
[List Name and contact number of contractor assigned to project. Provide details about services, and warrant information.]

Grant Amount:
[Detail the costs of the project as bid by the selected contractor.]

Acceptance and authorization

The terms and conditions of the Health & Safety Grant Program apply in full to the services and products provided under this Scope of Work.

Applicant agrees to allow Agency Staff and Contractor reasonable access to property to inspect, and to complete approved repair and replacement work.

The parties hereto, each acting with proper authority, hereby execute this Scope of Work.

____________________________________ __________________________________
Full Name Full Name
__Owner______________________ __Deputy Director________________
Title Title
____________________________________ __________________________________
Signature Signature
____________________________________ __________________________________
Date Date
 

City Administration
City of Brentwood City Council
150 City Park Way
Brentwood, CA 94513
(925) 516-5440
Fax (925) 516-5441
E-mail allcouncil@brentwoodca.gov