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HomeMy WebLinkAboutCCMPacket2013-05-07CITY COMMISSION MEETING AGENDA FOR MAY 7, 2013 5:30 P.M. ROLL CALL INVOCATION PLEDGE OF ALLEGIANCE ADDITIONS/DELETIONS I. WORKSHOP A. Fire Department Cost Recovery Proposal — FIRE CHIEF KYLE B. Roof Stabilization Program — L. THOMPSON II. CITY NIANAGER REPORT Ill. CONIMISSIONER COMMENTS IV. PUBLIC COMMENTS V. EXECUTIVE SESSION Paducah Fire Department Cost Recovery Proposal May 7, 2013 The Paducah Fire Department is proposing to initiate a cost recovery program for some responses that the department makes. The types of incidents that we are proposing to recover are vehicle fires, motor vehicle accidents w/extrication, and unauthorized burning events. We estimate that we would recover approximately $20,000/year for services provided for these types of incidents. We will have a presentation on Tuesday to discuss the details of the proposal and how it would work. T ORDINANCE NO. 201 J- AN ORDINANCE ESTABLISHING AND APPROVING THE ROOF ASSISTANCE PROGRAM AND AUTHORIZING THE PADUCAH DEPARTMENT OF MAIN STREET DIRECTOR TO ADMINISTER THE PROGRAM AND PROVIDE FINANCICAL ASSISTANCE TO ELIGIBLE APPLICANTS FOR REPAIR OF DEFICIENT ROOFS IN THE PADUCAH RENAISSANCE DISTRICT. WHEREAS. the City of Paducah is charged with the responsibility of overseeing the proper and orderly development or redevelopment of vacant, orphaned. or underutilized commercial properties located within its corporate boundaries and of insuring the integrity and quality of its existing residential and commercial neighborhoods; and WHEREAS.. the Citv of Paducah's economic well-being is related to and in many respects dependent upon, sustained growth of its population and tax revenue base through the proper and orderly development or redevelopment of vacant, orphaned. or underutilized residential and commercial properties located within its corporate boundaries; and WHEREAS. the city of Paducah proposes to enhance Downtown and Lower Town' physical environment by enhancing the physical appearance of the district by rehabilitating historic buildings; WHEREAS, the City of Paducah desires to commit funds for the establishment of the Roof Stabilization Assistance Program (the "Program"), which will be utilized to accomplish the goals of the Department of Main Street by providing forgivable payment loans to eligible applicants for the purpose of roof replacement and structure stabilization in the Paducah Renaissance District; WHEREAS, this Program will encourage rehabilitation of commercial properties located in the Renaissance District where infrastructure and services are in place and promote quality commercial redevelopment consistent with the character of the adjacent structures. BE IT ORDAINED BY THE CITY OF PADUCAH, KENTUCKY: ARTICLE I Section 1 Title 1.1 This Ordinance shall be known and malbe cited as the "Roof Stabilization Assistance Ordinance of the City of Paducah". Section 2 Purpose 2.1 This ordinance is intended to establish and facilitate how roof replacement and rehabilitation can be provided for property owners within the Paducah Renaissance District in order for the City of Paducah to combat roof problems that endanger the fabric and appearance of the historic area. Section 3 Definitions 3.1 Project Manager shall be the Director of Main Street Department aka Paducah Renaissance Alliance. 3.2 Roof Stabilization shall mean the restoration of a deficient or substandard roof to provide a leak proof rooting system, as need to provide a ten year warranty. A roof is defined as the entire roofing system to include the gutter and downspout drainage system. Section 4 General Provisions 4.1 Eligibility a. Eligibility for forgivable payment loans under the Program will be reviewed and preliminarily approved by the Project Manager upon the criteria outlined herein. Eligibility will be determined on a "first come, first serve basis." Alt property receiving the financial assistance under the Program shall be located within the Paducah Renaissance District. Final approval of eligibility for the forgivable deferred payment loan shall be given by the City Manager. b. Ali), structure, which is proposed for roof stabilization, shall be located in the Paducah Renaissance District and shall be considered deficient or substandard as determined by the Project Manager who may seek advice from the Deputy Fire Chief. In order to be deficient, a unit must need a minimum of $50,000 worth of improvements. Program parameters include: 1. The Program will target structures in need of roof stabilization. 2. Roof stabilization will be evaluated on need and overall completion of application. 3. Third party construction estimates and proof of financial ability to complete project will be required. 4. A City of Paducah letter of financial commitment will be given upon final approval of the forgivable payment loan by Project Manager. 5. Eligible applicant roof stabilization costs must exceed $50.000 to be eligible under the Program. 6. Each forgivable payment loan awarded to eligible applicants under this Program shall not exceed a maximum of $50.000 per structure or a minimum of $16.666 per structure. Each forgivable payment loan shall not exceed 1/3 of total building permit costs. S. Eligible roof stabilization improvements must be permanent. Eligible roof improvements shall include without limitation: a leak proof roofing system. as needed to provide a ten year warranty. A roof is defined as the entire roofing system to include the gutter and downspout drainage system. 9. Liquid assets should not exceed $100,000. c. The goal of the program is to save buildings. d. Eligible applicants shall, in waiting, agree to comply with all the requirements of this Ordinance, and any other applicable ordinance of the City of Paducah at the time the forgivable payment loan documents under this Ordinance is executed. 4.2 Repayment of Loan. a. The forgivable payment loan is a 0% interest loan evidenced by a promissory note in form and substance satisfactory to the City of Paducah and payable to the City of Paducah and secured by a mortgage interest in favor of the City of Paducah. The City of Paducah will prepare a promissory note and mortgage to be recorded. The mortgage would be considered second or in some cases third mortgage. b. The entire amount of the forgivable payment loan shall be forgiven by the City of Paducah over a period of five (5) years so long as the property owner is not in default, as described below. This loan shall be forgiven by amortizing the amount of the loan over a five (5) year period from the date of the issuance of the certificate of completion according to the schedule set forth below with the note automatically retiring after five (5) years. In the event of default, property owner shall immediately pay to the Cite of Paducah the loan amount less the yearly reductions in the total amount of the loan which sum shall be calculated according to the following schedule: i) Sale of property less than one year* 100% repayment ii) Sale of property after one year but less than two years* 80% repayment iii) Sale of propert} after two years but less than three years* 60% repayment iv) Sale of property after three years but less than four years* 40% repayment v) Sale of property after four years but less than five years* 20% repayment vi) Sale of property more than five years* 0% repayment 4. ; Events of Default. The occurrence of one or more of the following events will, at the option of the City of Paducah. constitute an event of default under the aforesaid note and mortgage: (a) In the event the property owner shall sel I or transfer ownership of the property for five (5) years. (b) Default in the performance of any other terms of the aforesaid note and mortgage; (c) Property owners insolvency, the appointment of a receiver for property owner or the institution of any bankruptcy proceedings by or against property owner; or (d) Any statement or document submitted to the City of Paducah or its agents by property owner contains any untrue statement of a material fact or omits to state a material fact required to be stated therein or which should be included therein for the purpose of determining property owners eligibility for the forgivable payment loan, or which is necessary in order to make the statements therein not misleading. 4.4 Remedies Upon Default. Upon the occurrence of any event of default by property owner. City of Paducah may declare the note immediately due and payable according to the schedule set forth in Section 4.2 and institute proceedings for its collection, including without limitation the foreclosure on the aforesaid mortgage securing the note. Section 5 Administration Under this section, the Project Manager undertakes to actively market through advertising in the media, distributing flyers, etc. the Roof Stabilization Assistance Program. 5.1 Staff a. The Project Manager shall perform the following duties: 1. Conducting at least one well publicized public meeting to outline and answer questions about the Roof Stabilization Assistance Program. 4 2. Preparation of information/application packets for distribution to interested Property Owners. 2. Preparation of the necessary applications. financial statements, a sununary of the commitments to the rules and regulations of the program, and such other forms to be executed in administering the program. The appropriate forms shall include. along with other data deemed appropriate. Roof Stabilization Assistance Program application. proof of ownership. financial qualifications and deed restrictions. 3. Review the eligibility of the applicant based on the requirements of this Ordinance and the data provided on the forms required as part of the application procedure and make a recommendation to PRA Board of Advisors. 5. Providing technical assistance to applicants. 6. Reviewing the deficiencies of an applicant's structure and submit the findings in writing to be kept on file as part of the application for financial assistance. 7. Maintaining a list of approved contractors based upon satisfactory references on past work performed. 8. Determining whether the proposed work to be performed meets the parameters of this Ordinance and whether the cost to complete that work is reasonable. Said determination shall be in writing and kept on file as part of the application. 9. Conducting appropriate, periodic inspections of the work being done and, when satisfactorily completed, issue a certificate of compliance bearing the date the certificate was issued. A copy of this certificate shall be kept as part of the file on the application. 10. Preparation and periodic presentation (at least once a year) to the City Commission of a report on the number and type of rehabilitation applications received and the amount of technical assistance provided by the Project Manager. The report shall contain, at a minimum: a. The number of applications received and approved. b. The number of rehabilitated structures completed. c. The rehabilitation cost of each unit. d. A summary of the type of work completed. e. How many applications are currently being processed. 5.2 Funding a. The City of Paducah may make annual budgetary appropriation as it deems necessary to fund the forgivable payment loans to be awarded under this Ordinance and the administrative costs associated therewith. b. Other sources of funding to administer and implement the Program may include without limitation state and federal programs when available. c. State and federal funds shall be disbursed according to the rules and regulations of the agency administering the funds. d. Each year the City Commission will review the Program and the market conditions in the Paducah Renaissance District to determine whether to continue the Program. amend the Program or terminate the Program and rely fully on market conditions to complete the redevelopment of the district. Section 6 Procedures for Making Application, Review and Approval 6.1 Application Applications and other required forms shall be made available at the Department of Main Street. Technical assistance shall be available from that office to assist applicants in completing and submitting an application. There shall be no fee for filing an application. Notice of application deadlines will be given. 6.2 Review a. The Project Manager shall determine the completeness of the application. Incomplete applications will not be processed. b. Upon a determination of completeness, the Project Manager shall make a determination as to whether the applicant meets the eligibility criteria under the Program. c. Upon a determination that the applicant is eligible under the Program, the Project Manager shall inspect the property to determine whether it qualifies as deficient under this Ordinance. d. Upon a determination that the structure is deficient, the Deputy Fire Chief and Project Manager shall cause a written description of the work required to be completed in order to meet the criteria of this Ordinance, and related building codes and submit a copy to the applicant and retain one copy to be kept as part of the applicant's tile. e. Upon receipt of the description of the work required to be completed. the applicant shall indicate any discrepancies or omissions in writing to the Project Manager. The Project Manager shall review the applicant's comments and provide a written response. including any appropriate adjustments to the original report. A copy of this response shall be submitted to the applicant with a copy to be kept as part of the applicant's file. f Following the final determination of the work to be performed, the Property Owner shall seek written proposals from appropriate qualified contractors. A list of these contractors shall be kept in the office of the Project Manager. The Project Manager shall 6 recommend a contractor based upon completeness of the proposal and the best -evaluated bid submitted. This recommendation shall be submitted to the applicant for review and concurrency. 6.3 Action on the Application a. Upon review of the approved contractor's written proposal and cost estimate. the Project Manager shall preliminarily approve, disapprove, or modify the proposal as might be appropriate to meet the requirements of the applicable ordinances of the City of Paducah and requirements of the Program and the reasonableness of the cost. If the proposal is modified or disapproved.. the applicant and the approved contractor may meet with the Project Manager to make appropriate modifications until the application is approved. b. Upon approval of the work to be performed and the related cost, the Project Manager shall submit the application and the work proposal together with all supporting documentation to PRA Board of Advisors for final approval. 6.4 Property Owners Obligations Upon Approval. Property Owner shall deliver to the Project Manager the following documents in fully executed form: a. A promissory note in the amount of the forgivable payment loan with terms as required by this Ordinance. b. A mortgage agreement in favor of the City of Paducah with terms as required by this Ordinance. c. A duly executed contract between Property owner and the approved contractor outlining the roof work to be performed, the cost to be incurred, including an amount to]- retainage, orretainage, to assure the acceptable completion of the construction, and the time of performance. This contract must be revieNved by and acceptable to the Project Manager; and d. Any other documents which may be requested by City of Paducah upon approval. 6.5 Disbursement of Forgivable Payment Loan Proceeds. Subject to the terms and conditions hereinafter provided, the property owner shall be entitled to draw proceeds on the forgivable payment loan up to the extent which is commensurate with the percentage of completion of the construction of the roof work as approved by the Project Manager. Project draws will be at 50%, 75% and 100% of rehabilitation work. For example, if roof work has been completed to the extent of 50 percent, the Property Owner shall be entitled to draw up to 50 percent of the forgivable payment loan. However, notwithstanding the foregoing. disbursement shall only be made when the following condition precedents shall have been satisfied: a. The Property Owner shall submit for the Project Manager's review a written request of voucher for loan disbursement. which shall have been prepared by the approved contractor. The written request or voucher shall be signed by both the approved contractor and the Property Owner. The written request or voucher shall fully set forth a specific description of the costs incurred in the construction process to the date of request. b. The Property Owner shall provide to Project Manager a certification executed by the approved contractor which shall certify the aforesaid costs incurred in the construction process, and that the same are due pursuant to the contractor agreement, and further. certify that all contractor fees and costs and all payments due the subcontractors (and their employees, agents, etc.), materialmen, and all other employees, agents, or others employed or contracted with directly or indirectly in the construction process have been fully paid to the date of the written request or voucher for loan disbursement; provided, however, that this latter provision shall not apply to any payments which may be due and owing and which are a part of the request for the loan disbursement, for which the approved contractor shall certify that such payments shall be made immediately following disbursement. c. That there does not exist any liens or adverse interests against the real property, nor has any notice been given regarding any person's intent to file such a lien or adverse interest. d. At the request of the Project Manager, the Property Owner shall provide to Project Manager interim mechanics' or materialmen lien waivers to be executed by the approved contractor, subcontractors, materialmen and/or their employees or agents. e. The Project Manager has verified the percentage of completion of construction.. and further, has verified that the construction process is in accordance with building and construction plans and specifications. f. The Property Owner has complied with the terms of this Ordinance and is not in default of any term or provision of the note, mortgage, and any other collateral agreement relating thereto. In the event all of the foregoing condition precedents are fully satisfied. the Project Manager shall within ten (10) business days following date of request remit directly to the approved contractor the permitted amount of draw from which costs shall be paid and fully satisfied. and the approved contractor shall pay and satisfy all sums due and owing to subcontractors and materialmen, and upon request, the Property Owner and the approved contractor shall provide to Project Manager receipts evidencing such payments. In the event all of the foregoing condition precedents are not fully satisfied, the Project Manager shall have the right, in its discretion. to refuse the request in total until such time as all condition precedents are satisfied. or pay such portion of the request that the Project Manager deems appropriate. Additionally. the Project Manager shall have the right to pay the forgivable payment loan proceeds directly to any creditors who have provided labor or materials for the construction of the rehabilitation work. which payments shall be deemed for and in behalf of the Property Owner and as a part of the forgivable payment loan hereunder. The Project Manager's determination shall be binding and final upon the Property Owner and the approved contractor. 6.6 Issuance of Certificate of Completion. Following completion of the work and a valid Certificate of Occupancy having been issued by the City of Paducah Fire Prevention Division, the Project Manager shall inspect the structure and certify whether or not the work has been satisfactorily completed. If the work is sufficient, a Certificate of Completion shall be issued and any retainage being held shall be paid directly to the approved contractor subject to the satisfaction of the conditions precedent set forth in Section 6.5 above. If the work is insufficient, the approved contractor shall be notified and given 90 days to remedy the conditions cited. If the conditions are not corrected within 90 days, the Project Manager shall be authorized to either use remaining loan proceeds, if any, and the retainage; and such other remedies as appropriate, to complete the rehabilitation work in a manner satisfactory to the Project Manager. ARTICLE 11 If any section, subparagraph, sentence. clause or phrase of this Ordinance shall be held to be invalid. such decision shall not invalidate the remaining portion of this Ordinance. ARTICLE III All Ordinances and parts of Ordinances inconsistent herewith are hereby repealed. ARTICLE IV This Ordinance shall be read on two separate days and will become effective upon summary publication pursuant to KRS Chapter 424. MAYOR ATTEST: City Clerk Introduced by the Board of Commissioners, . 2013 0 Adopted by the Board of Commissioners. .2013 Recorded by City Clerk. 2013 Published by The Paducah Sura. . 2013 fel