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HomeMy WebLinkAboutCouncil Actions 05-01-89 Bow~e$ (29~32) REGULAR WEEKLY SESSION ...... ROANOKE CITY COUNCIL May 1~ 1989 2:00 p.m. AGENDA FOR THE COUNCIL C-1 C-2 C-3 Call to Order -- Roll Call. All Present. The invocation will be delivered by The Reverend Jerry O. Campbell, Pastor, Greene Memorial United Methodist Church. Present. The Pledge of Allegiance to the Flag of the United States of America will be led by Mayor Noel C. Taylor. Recognition of Student Government Day participants and sponsor8. Ms. Niki Samuel was honored as the "1989 Student of the Year." CONSENT AGENDA (Approved 7-0) ALL MATTERS LISTED UNDER THE CONSENT AGENDA ARE CONSIDERED TO BE ROUTINE BY THE CITY COUNCIL AND WILL BE ENACTED BY ONE MOTION IN THE FORM LISTED BELOW. THERE WILL BE NO SEPARATE DIS- CUSSION OF THESE ITEMS. IF DISCUSSION IS DESIRED, THAT ITEM WILL BE REMOVED FROM THE CONSENT AGENDA AND CONSIDERED SEPARATELY. A list of items pending from July 10, 1978, through April 24~ 1989. RECOMMENDED ACTION: Receive and file. Qualification of Ms. Harriett M. Stokes as a member of the Roanoke Arts Cornmission~ to fill the unexpiced term of Mc. W. L. Whitwell~ ending June 30~ 1991. RECOMMENDED ACTION: Receive and file. Qualification of Ms. Mimi Hodgins as a member of the Roanoke Acts Cornmission~ to fill the unexpired teem of The Reverend Timothy W. Ashton, ending June 30, 1989. RECOMMENDED ACTION: Receive and file. Request for an Executive Session by Matter Pursuant to Section 2.1-344 (1959), as amended. Mr. Bowecs on a Personnel (a) (1), Code of Virginia (I) REGULAR AGENDA Hearing of Citizens Upon Public Matters: Request of Mrs. Rosa Miller, President, Northwest Neighbor- hood Improvement Council, to address Council with regard to a petition seeking assistance from the City of Roanoke in cleaning certain blighted areas. Received and filed. Petitions and Communications: None· Reports of Officers: a. City Manager: Briefings: None· Items Recommended for Action: A report recommending authorization to submit an appli- cation to the State Department of Corrections for renewal of a grant for the Office on Youth. Adopted Resolution No. 29532. (7-0) A report recommending authorization to execute a Memorandum of Understanding with the City of Roanoke Redevelopment and Housing Authority for the administra- tion of the 1988 Rental Rehabilitation Program· Adopted Ordinance No. 29533. (7-0) A report recommending execution of a grant agreement with the United States Department of Housing and Urban Development, accepting Fiscal Year 1989 Rental Rehabilitation Program funds in the amount of $106,000.00. Adopted Ordinance No. 29534. (7-0) b. Director of Finance: A joint report of Manager with regard of Roanoke retirees. the Director of Finance and City to a cost-of-living raise for City Concurred in the report. Reports of Committees: A report of the committee appointed to tabulate bids received for repairs and improvements to Alum Tanks at the Water Pollution Control Plant, recommending award of a (2) 10. contract to Structures and Utilities Co., Inc., in the amount of $44,500.00; and appropriation of funds therefor. Council Member Robert A. Garland, Chairman. Adopted Ordinance No. 29535. (7-0) be A report of the Water Resources Co~ittee recommending appropriation of $38,000.00 in order to cover an over- expenditure and provide necessary funds for estimated electric costs for operating Carvins Cove Filter Plant, Falling Creek Filter Plant and Carvins Cove Low Lift Pump Station through the current fiscal year. Council Member Elizabeth T. Bowles~ Chairman. Adopted Ordinance No. 29536. (7-0) A report of the Water Resources Committee recommending authorization to sell certain City-owned property located at the southwest corner of Plantation Road and Mohawk Avenue~ N. E., identified as Official Tax No. 3040712, to Executone Corr~nunications, Inc., for $2~500.00. Council Member Elizabeth T. Bowles, Chairman. Adopted Ordinance No. 29537 on first reading. (7-0) dj A report of the Water Resources Committee recommending that the City Manager be authorized to enter into an agreement with the County of Roanoke and the Virginia Department of Transportation, for storm drainage improvements in the vicinity of Williamson Road and Nelms Lane, N. W. Council Member Elizabeth T. Bowles, Chairman. Adopted Ordinance No. 29538. Unfinished Business: None. Introduction and Consideration of Ordinances and Resolutions: None· Motions and Miscellaneous Business: Inquiries and/or co~ents by the Mayor and members of City Council. Vacancies on various authorities~ boards, cowmissions and corr~ittees appointed by Council· Other Hearings of Citizens: (3) Student Government Day Activities May 1989 7:30-7:50 a.m. 7:50-8:00 a.m. 8:00-11:45 a.m. 11:45-1:30 p.m. City Council Chambers, fourth floor, Municipal Building Students arrive to meet government counterparts and receive name tags/information Juice/donuts in the Council Conference Room Opening remarks - Mayor Noel C. Taylor Council Chambers Student will work with his/her government counterpart Campbell Court, 17 Campbell Avenue, S.W., 2nd Floor Opening Remarks - Chairman, Youth Services Citizen Board, Reverend Ulas Broady Lunch 1:30-1:50 p.m. 1:50 p.m. 2:00 p.m. 3:00 p.m. Remarks - Vice Mayor Beverly T. Fitzpatrick - Dr. Frank Tota, Superintendent, Roanoke City Schools Special Presentations - Michelle Bono, Public Information Officer Presentation of Certificates for Student Government Day Participation - Sandy Sayers, Patrick Henry High School - Sandra Puckett, William Fleming High School Break Students return to Council Chambers City Council meeting - Special Presentation by · Mayor Noel C. Taylor Brief City Council recess for students to leave Chamabers ** Please remember to fill out your evaluation form and return it City staff. Thank you. Pending Items Referral Date 7/10/78 2/23/87 6/20/88 8/8/88 8/8/88 9/12/88 from July I0, 1978~ Referred To City Manager Regional Cable Television Committee Regional Cable Television Comynittee City Manager 1989-90 Budget Study City Attorney City Manager through April 24~ 1989. Item Recommendation No. 11 con- tained in the Mayor's 1978 State of the City Message. (Development off Mill Moun- tain - hotel.) Request of Cox Cable Roanoke for a renewal of their fran- chise agreement in order to simplify and clarify langu- age, make certain additions and deletions~ and extend the term. Communication advising of Cox Cable Roanoke's intent to seek renewal of the Cable Television Franchise in the City of Roanoke. Mayor's 1988 State of the City recommendation No. 1 pursue a diversified economic development strategy invol- ving downtown~ industrial areas~ tourism and conven- tions and review the current City organizational structure manpower, and money available to market the City. Mayor's 1988 State of the City recommendation No. 5 - encourage federal officials to ensure health care costs for AIDS patients and to pre- vent ail forms of discrimina- tion against those who are stricken with this disease. Comments of Mr. Michael B. Smith, regarding the need for a storm drainage system on EdgeIawn Avenue, N. W., to eliminate excessive water run-off. Pending Items from July 10, 1978, Referral Date Referred To 11/14/88 City Manager 1/9/89 City Manager 4/10/89 City Manager City Attorney 4/17/89 City Manager 4/17/89 1989-90 Budget Study through April 24, 1989. Item Report of the City Planning Commission recommending ap- proval of the proposal of the Citizens' Advisory Committee on City-Wide Parks Study to name the sports complex area near Victory Stadium, "Roa- noke River Sports Complex." Matter with regard to speed- ing on Hemlock Road, N. W. Requested to prepare the proper measure to be for- warded to local governments in the Roanoke Valley expressing the concern of Council over the problem of drug abuse and the need to address the matter on a regional basis; viz: renova- tion of the alcohol detoxifi- cation and rehabilitation center at 801 Shenandoah Avenue, N. Wo, in the total amount of $256,876.00, of which the City of Roanoke will appropriate $84,000.00 in C.D.B.G. funds. A communication from Mr. Roger E. Franklin requesting consideration of certain pro- posals for neighborhood revi- talization. Recommended 1989-90 General Fund Budget for the City of Roanoke. -2- CY~C~ of rh~ Oty Clem May 3, 1989 File #15-230 Mr. Timothy L. Jamieson, Chairman Roanoke Arts Commission 6857 Sugar Rum Ridge Road, S. W. Roanoke, Virginia 24018 Dear Mr. Jamieson: This is to advise you that Ms. ~arriett Hodgins have qualified as members of the for terms ending June 30, 1991 and June Sincerely, Mary F. Parker, City Clerk M. Stokes and Ms. Mimi Roanoke Arts Corrc~ission 30, 1989, respectively. CMC MFP : ra pc: Ms. Joyce A. Sink, Secretary, Roanolce Arts Commission Room 456 Munici~c~al Building 215 C~ui~'h A,.,~qu~ SW. B~x~noke '4rg~nia 24~11 (703) 981-254~ 0-2 , CITY iL~ '' Oath or Affirmation of Office State o] Virginia, ~it~t o~ l~oanoke, to.~olt: I w~l aup~rt the Conatit.tion of the Unit~ ~tatea, and the Constitution of the 8tale of ~i~gini~, snd ~t I ~1 faithfull~ and imp.~iall~ discharge and perform all the duties incumbent upon me aa · Deputy Clerk Office of the City Cler~ April 12, 1989 File #15-230 Ms. Harriett M. Stokes 242 Locust Avenue Salem, Virginia 24153 Dear Ms. Stokes: At a regular meeting of the Council of the City of Roanoke held on Monday, April 10, 1989, you were elected as a member of the Roanoke Arts Co~nission, to fill the unexpired term of Mr. W. L. Whitwell ending June 30, 1991. Enclosed you will find a certificate of your election and an Oath or Affirmation of Office which may be administered by the Clerk of the Circuit Court of the City of Roanoke, located on the third floor of the Roanoke City Courts Facility, 315 Church Avenue, Please return one copy of the Oath of Office to Room 456 in the Municipal Building prior to serving in the capacity to which you were elected. Sincerely, ~l~ Mary F. Parker, CMC City Clerk MFP:ra Ene. pc: Mr. Timothy L. Jamieson, Chairman, Roanoke Arts Corr~nission, 6857 Sugar Rum Ridge Road, S. W., Roanoke, Virginia 24018 Ms. Joyce A. Sink, Secretary, Roanoke Arts Commission Room 456 Municipal Building 2t5 C~urch Avenue, SW. Roanoke, Virginia 24011 (703) 981-254't COMMONWEALTH OF VIRGINIA ) ) To-wit: CITY OF ROANOKE ) I, Mary F. Parker, City Clerk, and as such City Clerk of the Council of the City of Roanoke and keeper of the records thereof, do hereby certify that at a regular meeting of Council held on the tenth day of April, 1989, HARRIETT M. STOKES was elected as a member of the Roanoke Arts Cor~nission, to fill the unexpired term of Mr. W. L. Whitwell ending June 30, 1990. Given under my hand and the Seal of the City of Roanoke this twelfth day of April, 1989. City Clerk 0-2 Oath or Affirmation of Office 8tat~ o] Virginia, ~it~t o] Roanoke, to .~oi~: I, ., do solemnly swear (or affirm) that I will support the Constitution o! the United States, and the Constitution of the State of Virginin, and that I will faithhflly and impor'cially discharge and perform all the duties incumbent upon me as according to the best of my ability. So help me God. Subscribed and sworn to before me, this Deputy Clerk Office of the Cig, Clerk April 12, 1989 File #15-230 Ms. Mimi Hodgins 805 Virginia Avenue Salem, Virginia 24153 Dear Ms. Hodgins: At a regular meeting of the Council of the City of Roanoke held on Monday, April 10, 1989, you were elected as a member of the Roanoke Arts Cor~ission, to fill the unexpired term of The Reverend Timothy Wo Ashton ending June 30, 1989. Enclosed you will find a certificate of your election and an Oath or Affirmation of Office which may be administered by the Clerk of the Circuit Court of the City of Roanoke, located on the third floor of the Roanoke City Courts Facility, 315 Church Avenue, S. W. Please return one copy of the Oath of Office to Room 456 in the Municipal Building prior to serving in the capacity to which you were elected. Sincere ly, ~l~.~'t.~ Mary F. Parker, CMC City Clerk MFP:ra Enco pc: Mr. Timothy L. Jamieson, Chairman, Roanoke Arts Corr~ission, 6857 Sugar Rum Ridge Road, S. W., Roanoke, Virginia 24018 Ms. Joyce A. Sink, Secretary, Roanoke Arts Corr~nission Room 456 Municipal Building 215 Chub'ch Avenue S W Roanoke. ",,1rg~nia 2401 t (703) 981-2541 COMMONWEALTH OF VIRGINIA ) ) To-wit: CITY OF ROANOKE ) I, Mary F. Parker, City Clerk, and as such City Clerk of the Council of the City of Roanoke and keeper of the records thereof, do hereby certify that at a regular meeting of Council held on the tenth day of April, 1989, MIMI HODGINS was elected as a member of the Roanoke Arts Corr~nission, to fill the unexpired of The Reverend Timothy W. Ashton ending June 30, 1989. Given under my hand and the Seal of the City of Roanoke twelfth day of April, 1989. this City Clerk Office of the Council May 1~ 1989 The Honorable Mayor and Members of Roanoke City Council ~oanokeo Virginia Dear Mrs. Bowles and Gentlemen: I wish to request an Executive Session matter~ pursuant to Section 2.1-344 (a) (1950)o as amended. to discuss (1), Code a personnel of Virginia Sincerely, David A. Bowers Council Member DAB: se Room 456 Municipal Building 215 Qhurch A'c~'~ue, SW Ro~n4:Y~, Vli~inio 240t t (703) 981-2541 621 Rutherford Avenue N.W. Roanoke, Virginia 24016 April 23, 1989 Mayor N.C. Taylor & City Council 215 Church Avenue S.W. Roanoke, Virginia24016 To Mayor Taylor & Members of City Council: We, the members of the Northwest Neighborhood Improvement Council,are requesting time on the agenda of the May 1, 1989 meeting. Our spokes- person will be Mrs. Rosa Miller, president of the organization. We do hope this request will be granted. Thank you. Sincerely, Northwest Neighborhood Im- provement Council Mrs. Rosa Miller, President Veron ~olland, Secret. ry Office of ~e CaW Cern ~ay 3, 1989 File #236-304 Mr. W. Robert Herbert City Manager Roanoke, Virginia Dear Mr. Herbert: I am attaching copy of Resolution No. 29532 authorizing accep- tance of a Delinquency Prevention and Youth Development .ict Grant made to the City of Roanoke by the Commonwealth of Virginia Department of Corrections, and authorizing acceptance, execution and filing of the "Special Conditions" with the Department of Corrections for said grant for the purpose of continuing coor- dinated planning and youth services program implementation by the City's Office on Youth until June 30, 1990, which Resolution No. 29532 was adopted by the Council of the City of Roanoke at a regular meeting held on Monday, May 1, 1989. Sincerely, Mary F. Parker, City Clerk MFP:ra Enc o pc: The Reverend Ulas N. Broady, Chairman, Youth Services Citizen Board, 2204 Lynnhope Drive, N. W., Roanoke, Virginia 24017 Mr. James D. Ritchie, Director of Human Resources Mr. William F. Clark, Director of Public Works Ms. Marion V. Crenshaw, Youth Planner Mr. John R. Marlles, Chief of Community Planning Room456 MunicipalBuilding 215 Church Avenue SW Roanoke ~r~nia24~11 (703)98t-2541 IN THE COUNCIL OF THE CITY OF ROANOKE, VIRGINIA, The 1st day of May, 1989. No. 29532. A RESOLUTION authorizing the acceptance of a Delinquency Prevention and Youth Development Act Grant made to the City of Roanoke by the Commonwealth of Virginia Department of Corrections and authorizing the acceptance, execution and filing of the "Special Conditions" with the Department of Corrections for this grant for the purpose of continuing coordinated planning and youth services program implementation by the City's Office on Youth until June 30, 1990. BE IT RESOLVED by the Council of the City of Roanoke that: 1. The City of Roanoke hereby accepts the offer made by the Commonwelath of Virginia Department of Corrections of a Delinquency Prevention and Youth Development Act Grant for the purpose of con- tinuing coordinated planning and youth services program implemen- tation by the City's Office on Youth until June 30, 1990, in an amount and subject to such terms as are described in the report to Council from the City ~anager dated May 1, 1989. 2. The City Manager, ~. Robert Herbert, or the Assistant City Manager, Earl B. Reynolds, Jr., is hereby authorized to accept, execute and file on behalf of the City of Roanoke the "Special Conditions" with the Department of Corrections for the aforemen- tioned grant. 3. The City Manager is further directed to furnish such addi- tional information as may be required by the Department of Corrections in connection with the City's acceptance of the afore- mentioned grant or with such project. ATTEST: City Clerk. Roanoke, Virginia May 1, 1989 The Honorable Mayor and Members of City Council Roanoke, Virginia Dear Members of Council: Subject: Renewal of Grant Application for Office on Youth I. Background: Grant first officially awarded to the City under the Virginia Delinquency Prevention and Youth Development Act on June 17, 1980. Grant budget is for 12-month period, beginning July 1, 1989 through June 30, 1990. Grant provides for continuation of coordinated planning and program implementation for the Office on Youth. II. Current Situation: A. Grant budget is as follows: Budget Category Local Match State Funds Cash In-Kind Total Personnel Consultants Travel Equipment Supplies and Other Operating Expenses $37,712 $ -0- $37,712 -0- -0- -0- 995 1,400 2,395 -0- -0- -0- -0- 8,600 3,000 11,600 Total 38,707 10,000 3,000 51,707 Funding for local cash match in the amount of $10,000 has been included in the FY89-90 Community Planning budget account no.001 052 8110 9536. Members of Council Page 2 May 1, 1989 III. Issues: IV. A. Cost. B. Continuity. C. Staff. D. Impact on future City budgets. Alternatives: Authorize the City Manager to submit the Youth Services Grant to the State Department of Corrections. Cost (local) of Office on Youth in FY89-90 is $10,000, which has been included in the FY89-90 Community Planning budget. 2. Continuity of program would be maintained. Staff, consisting of Youth Planner and part-time secretary, has been hired under the direction of the Office of Community Planning. Impact on future City budgets would mean continued City cost of 25% of total projected budgeted for the Office on Youth. Do not authorize the City Manager to submit the Youth Services Grant to the State Department of Corrections. 1. Cost would not be an issue at this time. 2. Continuity would be questionable. Staff, consisting of Youth Planner and part-time secretary, would be contingent upon the availability of another funding source. Impact on future City budgets would be the possibility of more than the 25% contribution towards maintenance of the program. Members of Council Page 3 May 1, 1989 Recommendation: It is recommended that City Council adopt Alternative A which will authorize the City Manager and the Director of Finance to execute and forward the grant application to the Department of Corrections. If awarded, the grant will be presented to City Council for acceptance and fund appropriation. Respectfully submitted, W. Robert Herbert City Manager WRH:mpf attachment cc: Assistant City Manager City Attorney Director of Finance Director of Human Resources Director of Public Works Chief, Office of Community Planning Chairman, Youth Services Citizen Board Office of ~e Ci~ Cier~ ~tay 3, 1989 File . Mr. W. Robert Herbert City Manager Roanoke, Virginia Dear Mr. Herbert: I am attaching copy of Ordinance No. 29533 authorizing execution of a Memorandum of Understanding with the City of Roanoke Redevelopment and Housing Authority pertaining to the administra- tion of a Rental Rehabilitation Program as described in a report of the City Manager under date of May I, 1989, which Ordinance No. 29533 was adopted by the Council of the City of Roanoke at a regular meeting held on Monday, May 1, 1989. Sincerely, ~ Mary F. Parker, CMC City Clerk MFP:ra Enc, pc: Mr. Herbert D. McBride, Executive Director, Roanoke Redevelopment and Housing Authority, 2624 Salem Turnpike, N. W., Roanoke, Virginia 24017 ~r. William F. Clark, Director of Public Works Mr. Ronald H. Miller, Building Commissioner/Zoning Administrator Mr. Daniel H. Pollock, Housing Development Coordinator Ms. Marie T. Pontius, Grants Monitoring Administrator ROOm 456 Municii:x:ll Building 215 C~urch Avenue SW Roanoke. ~rg~nia 2401 '~ (703) 981-254'~ IN THE COUNCIL OF THE CITY OF ROANOKE, The 1st day of May, 1989. No. 29533. VIRGINIA, AN ORDINANCE authorizing the execution of a Memorandum of Under- standing with the City of Roanoke Redevelopment and Housing Authority pertaining to the administration of a Rental Rehabilitation Program; and providing for an emergency. BE IT ORDAINED by the Council of the City of Roanoke that: 1. The City Manager or the Assistant City Manager and the City Clerk are hereby authorized on behalf of the City to execute and attest, respectively, the requisite Memorandum of Understanding with the City of Roanoke Redevelopment and Housing Authority per- taining to the administration of a Rental Rehabilitation Program, as requested and described in the City Manager's report to Council dated May 1, 1989; such Memorandum of Understanding to be approved as to form by the City Attorney. 2. In order to provide for the usual daily operation of the municipal government, an emergency is deemed to exist, and this ordi- nance shall be in full force and effect upon its passage. ATTEST: City Clerk. k Roanoke, Virginia May l, 1989 Honorable Mayor and Members of Council Roanoke, Virginia Dear Members of Council: Subject: I988 Rental Rehabilitation Program - Execution of Memorandum of Understanding With RRHA I. Background Rental Rehabilitation Program is a cooperative program among the Department of Housing and Urban Development (HUD), the City, and the Roanoke Redevelopment and Housing Authority (RRHA), to encourage reha- bilitation of privately-owned rental property in targeted neighborhoods. B. Roanoke received its 1988 Program allocation of $1#2,000 from HUD in August 1988. Program's design at that time provided that: Funds from HUD would be loaned to property owners to pay one-third of rehabilitation costs, as a no-interest loan, to be repaid in one lump sum after l0 years; and The balance of rehabilitation costs would be loaned to property- owners by the RRHA, from a $350~000 loan made to the RRHA by the Virginia Housing Development Authority (VHDA) ca 7% for l0 years. Detailed provisions of $350~000 loan from VHDA to RRHA, were determined to be unacceptable to administrative staff of the City and RRHA. Negotiations with VHDA did not produce acceptable terms for this loan until recently. II. Current Situation A. General agreement with VHDA has now been reached and provides that: 1. VHDA will set $350~000 aside for use in conjunction with Roanoke's HUD-funded Rental Rehabilitation Program; VHDA will loan its funds directly to property owners for rehabili- tation and possibly acquisition or refinancing under the Program. Therefore, the RRHA and City are not borrowing or lending the funds and are not accountable for them. However; R'RHA and City will select properties to receive loans with VHDA's approval, and will package VHDA loan applications, oversee rehabi- litation, and generally administer the Program; and /~. VHDA will service its own loans, i.e. receive payments, keep its own accounting, be responsible for delinquencies and defaults, etc. May 1, 1989 Page 2 Bo Technic~lly~ Roanoke's Rental Rehabilitation Program will consist of the loans for one-third of rehabilitation costs, from HUD funds, with the applying property-owner taking responsibility for matching with other financing. Practically, however, most property-owners are expected to take advantage of the attractive terms of VHDA's supplemen- tal loans, which will enhance dramatically the rehab feasibility of many projects, while enabling the City/RRHA loans to be repaid after l0 years. Execution of a Memorandum of Understanding with the RRHA is necessary to specify the arrangements between that agency and the City for implementation of the Program, now that agreement has been reached with VHDA on that agency's role in the financing process. III. Issues A. Impact on neighborhood revitalization g. Housing opportunities for disadvantaged citizens C. Cost to the City D. Timing IV. Alternatives Authorize the City Manager to execute the Memorandum of Understandinr, (Attachment) with the RRHA for administration of the 1988 Rental Rehabilitation Program, the Memorandum to be approved as to form by the City Attorney. Impact on neighborhood revitalization would be positive. The Program will result in more than $¢26~000 of complete rehabilita- tion to 22-28 rental units. In addition, the $1#2~000 from HUD eventually will be repaid to the City for other rehabilitation pro- jects in the future. Housing opportunities for disadvantaged citizens will be enhanced, as all units renovated using VHDA funds will be occupied by low- moderate income tenants for the life of the VHI)A loan for the pro- perty. Cost to the City will be nothing. The $1#2~000 grant from HUD is reserved to the City, requires no City matching funds, and is drawn on by the RRHA as the administering agent. The VHDA funds reserved to the Program do not constitute an obligation of the City and will not require a match of any funds from the City other than the HUD funds for the Program. Administration of the Program in this fiscal year is provided for by the contract for services between the RRHA and the City, and will be accomplished with existing staff, paid with CI)BG funds. t~. ~ is such that the Program can be advertised immediately. The oegmmn$ and ending dates of the 1988 Program are specified in paragraph 9 of the memorandum of understanding (Attachment). May l, 1989 Page 3 15. Do not authorize the execution of the Memorandum of Understandinl; with the RRHA for the Rental Rehabilitation Program. Impact on neighborhood revitalization would be negative. Approximately 25 substandard rental units in l0 - 15 buildings would continue to deteriorate, have a blighting effect on neighborhoods, and pose health and safety hazards to occupants and/or the public. ~tousing opportunities for disadvantaged citizens would be hindered, in that low-income families would have fewer decent housing opportunities for rent. Cost to the City would be increased due to lost tax revenue from the upgraded buildings, and to the staff attention required by substandard housing. Alternative arrangements would have to be made for admi- nistration of the HUD-funded Program, for which City staffing is inadequate. Timing is such that il much more delay is experienced in beginning the 1988 Program, HUD could recapture the $142,000 allocation, taking it away from the City. V. Recommendation Adopt Alternative A, thereby authorizing the City Manager to execute the Memorandum of Understanding (Attachment) with the RRHA for the administra- tion of the 1988 Rental Rehabilitation Program, such Memorandum to be approved as to form by the City Attorney. Respectfully submitted, W. Robert Herbert City Manager WRH:HDP:bc Attachment CC** City Attorney Director of Finance Director of Public Works Building Commissioner Housing Development Coordinator Grants Monitoring Administrator Executive Director~ RRHA (CR.6) MEMORANDUM OF UNDERSTANDING RENTAL REHABILITATION PROGRAM Fiscal Year 1988 This Memorandum of Understanding (Memorandum) is between the City of Roanoke (Grantee), and the City of Roanoke Redevelopment and Housing Authority (RRHA). This memorandum sets forth the understandings of the parties concerning the Grantee's Rental Rehabilitation Program (Program) approved by the U. S. Department of Housing and Urban Development (HUD) per- suant to Section 17 of the United States Housing Act of 1937 (t~2 USC 1~37o), and supported by funding from the Virginia Housing Development Authority (VHDA). The Grantee has received $1t~2,000 from HUD in Federal Fiscal Year 1988 for its Program to finance the rehabilitation of rental properties for the benefit of lower-income families. VHDA has agreed to reserve $350,000 to be loaned in conjuction with the Program. The Grantee and the RRHA hereby agree as follows: 1. The Grantee and the RRHA cooperatively will administer the Program in accordance with: a. Section 17 and other applicable Federal laws; and b. the regulations in 2t~ CFR Part 311; and c. the Program description submitted to and approved by HUD and attached hereto. The Grantee and the RRHA will establish a program management team (Team) to include at least the following: H. Wesley White, 3r., Land Planning/Subsidized Housing Director Roanoke Redevelopment and Housing Authority P. O. Box 6359 Roanoke, Virginia 2t~017 (703) 983-920# H. Daniel Pollock, 3r., Housing Development Coordinator Room 170, Municipal Building 213 Church Avenue S. W. Roanoke, Virginia 2t~011-1392 (703) 981-2221 RRHA Rehabilitation Inspector ,Viemorandum of Understanding Page 2 The Team cooperatively will select the residential projects to be reha- bilitated under the Program, using the minimum guidelines of the Program and the Evaluation Scale defined in the Program description. The RRHA shall perform inspections of projects before eligibility is determined and any tentative commitment is made. The RRHA will also obtain verifications of necessary information on projects receiving initial approvals, but before the Team issues a financing commitment to that project. Upon selection of a project, the RRHA shall issue a financing commit- ment contingent upon the applicant's obtaining or providing the balance of the funds needed for project completion. If the applicant wishes to obtain VHDA financing, the RRHA will assist the applicant to package a loan application to VHDA, including verifications, information, etc. obtained by the RRHA earlier. ' 3. The RRHA shall make deferred payment loans from HUD funds to owners selected properties who obtain or provide the necessary supplemental financing, in accordance with the Program description. 6. The RRHA shall perform inspections periodically during rehabilitation as necessary to have rehabilitation completed according to schedules established with the property owner, and to insure work performed is in accordance with the approved work write-up, building code requirements, and Housing Quality Standards. The RRHA will also periodically verify continued compliance of the project with the Deed of Trust held by the RRHA on the property as a condition of the rehabilitation subsidy. 7. The RRHA agrees to determine the eligibility for rental assistance via Housing Vouchers and/or Certificates of the families residing in the projects approved to be rehabilitated under the Program, as required by HUD and policies of the RRHA. 8. The RRHA shall report monthly to the Grantee the progress of the Program, including the applications received , and the status of their review, approval, funding, rehabilitation and completion. 9. The time of performance for the marketing, eligibility verification, rehabilitation inspections, and making of deferred payment loans shall be from the date of execution of this agreement until the earlier of the following: a. the available $1t~2,000 is exhausted b. HUD withdraws Program funds from the Grantee) or c. 3uly 1~ 1989, unless extended by the terms of a separate contract for services between the Grantee and the RRHA for a time beyond 3une 30, 1989. Memorandum of Understanding Page 3 BY,' 10. The time of performance for verification of compliance of each project with the Deed of Trust extended as a condition of the rehabilitation subsidy shall be the ten-year term of each Deed of Trust held by the RRHA. 11. To the extent that the rehabilitation subsidy funds are repaid to the RRHA by owners of property receiving such funds, the RRHA will return such funds to the Grantee. For the Grantee: City Manager Date For the RRHA: Executive Director Date FEOERAL ASSISTANCE ,, 88 05 18 :~"'~'"~'~ity of Roanoke Office of the City Manager 215 Church Avenue SW Roanoke ..r~ VA ,m,~--. 24011 funds to the City to subsidize rehabilitation of rental property to be principally occupied by low income tenants. City of Roanoke, Virginia 25,000 (liN) Rehabilitation Pro( ~Mmmm~ 701 East Franklin Street Richmond, VA 23219 .Rental Rehabilitation Program I. Background Roanoke is a city of approximately 100,000 citizens housed in dwelling units. Like most cities, Roanoke has had periods of rapid growth and of stability. The last 30 years has been a time of maturation for the City. Compared to the Roanoke metropolitan area, the City's housing stack is relatively old, more likely to be rental property, and more likely to be in need of repair. Two-thirds of all housing units in the City are more than 25 years old. Almost half are more than ~5 years old. ~!/ith age comes the need for substantial repairs or renovations and more diligent preventive main- tenance. Because of the expense, many owners have deferred taking these measures~ without which the houses have tended to deteriorate at an acce- lerating pace. The too frequent result of this can be seen in the figures for vacant housing units (about 2,600) and values of single-family houses (20% are assessed at less than S20,000; 7% at less than SI0,000.) The City of Roanoke and the Roanoke Redevelopment and Housing Authority have administered a variety of neighborhood revitalization programs over recent years. Most of these programs and the funds allocated to them have been targeted toward the rehabilitation of owner-occupied houses in neigh- borhoods designated as Conservation Areas or Rehabilitation Districts under Virginia law. This concentration has begun to have a significant positive effect in these neighborhoods. However, a large proportion of the housing stock in the aforementioned areas is rental property (50!t~, compared to 39% City-wide), of which a sizable percentage are in fair to poor condition. The incentive for pri- vate investments to be made in owner-occupied homes in these neighborhoods is weakened by nearby rental units in disrepair. It is obvious that the upgrading of deteriorated rental property must be a critical element of overall neighborhood revitalization. Past and current programs for rehabilitation of rental property have con- sisted of Section 8/Moderate Rehabilitation and Substantial Rehabilitation/ Public Housing. While each of these programs has contributed to the improve- ment of housing stock, neither is designed to encourage a strong role by the private~ unsubsidized rental market in neighborhood revitalization. The Rental Rehabilitation Program described herein is designed to attract private investment while maintaining flexibility in an area's housing market, by the direct rehabilitation of 20-22 rental housing units that may be occupied by lower income families. Indirectly, the improvement of these units will encourage maintenance and repair to other rental and owner- occupied buildings nearby. Rental Rehabilitation Program Page 2 II. Pro,ram Design A. Form of Rehabilitation Subsidy The City's Rental Rehabilitation Program will offer a complete financing package, blending Rental Rehabilitation Program funds with loan funds made available by Virginia Housing Development Authority from the Virginia Housing Fund. Specifically, the arrangements will be as follows.. '1. Rental Rehabilitation Program funds from HUD's program aUocation will finance one-third of rehabilitation costs, up to the per-unit limits HUD allows, l'his supplement will be in the form of a deferred payment loan (DPL) with a balloon payment in either 5 or 10 years, depending on the financing option chosen by the applicant property-owner (3a and 3b below). 2. Loans from VHD^'s Virginia Housing Fund will be used for the balance of the rehabilitation, and for purchase i! one is involved, the financial figures allow, and the applicant wishes. 3. Loans from the Housing Fund will be made under two Scenarios, at the option of the applicant: a) ^ 20-year amortization with a balloon payment after 5 years. The HUD Program funding would also have a balloon payment due 5 years. b) A 10-year amortization. The HUD Program funding would have a 10-year balloon. Following is a comparison of these two arrangements for a typical duplex 2-bedroom units, receiving 530,000 rehabilitation: Alternative A: 20-year amortization with a balloon payment in ~ years 520,000 loan from VHD^ (a 74~ 20-year term 515§/month 510,000 Program DPL~ 5-year ballnn., 0 ~4onthly payment for first ) years -' ~155/month After 5 years, refinance remaining principal of 517,260 + 510,000 from Program DPL to meet balloon payments (e.g. assume 134 for 10-year term = 5~07/month after 1st § years) Alternative R: 10-year 10 years amortization~ balloon payment on Program DPL in $20,000 loan from VHD^ 0 74, 10-year term 5232/month $10,000 Program DPL! 10-year ~onthly payment for Zirst 10 years-~' 0 ~232/month ~fter lO years, refinance 510,000 from Program DPL to meet balloon payment (e.g. assume 13~ for )-year term = 5228~month after 1st 10 years) Rental Rehabilitation Program Page 3 Offering these two options will increase the flexibility of the Program to fit the personal investment obiectives of the applicant, whether of maximum immediate cash flow or of equity appreciation. It also may increase the probability that the Program may be applied beneficially to a wider variety of properties. Of major importance to the City is the eventual return of Program funds for reuse, either in 5 or 10 years. B. General Conditions I. Each unit subsidized must be located in an area designated as eli- gible for the Program (see Section IIC following). 2. Each unit subsidized under the Program must be substandard according to either Section 8 Housing Quality Standards (HQS) or the City's Building Code. 3. Minimum loan underwriting criteria will be established for pro- jects to be financed under the Program, relating to: --Loan-to-Value ratios --Income and cash flow --Personal financial condition of the applicant. ¢. Each unit subsidized under the Program must be renovated to at least Section 8 HQS and qualify for a Certificate of Occupancy from the City Building Department. As part of the rehabilitation, improvement of the exterior appearance of the building will be con- sidered a priority. 5. Any unit rehabilitated under the Program must receive work costing at least $6,000. Each unit must be maintained at least to Section 8 HQS and Certificate of Occupancy standards for the term of the DPL, whether occupied by Section 8 tenants or not. No unit subsidized under the Program may be converted to a con- dominium or cooperative for the term of the DPL. There may be no discrimination against a prospective tenant because of receipt of or eligibility for housing assistance, or because of residence with a minor child, for the term of the DPL. Each property owner will agree to comply with applicable require- ments for nondiscrimination and "affirmative marketing" of units rehabilitated under the Program for the term of the DPL. Guide- lines and procedures for property-owners will be developed jointly by the City and the Roanoke Redevelopment and Housing Authority, to insure that each owner is aware of his/her obligations in this regard. (See Attachments to this Program Description.) Rental Rehabilitation Program Page ~ Areas of ~ The Rental Rehabilitation Program will be offered in the areas shown on the attached map, including the following neighborhoods: Gainsboro Conservation Area Gilnler Avenue Conservation Area Harrison Avenue Conservation Area Hurt Park Conservation Area Belmont Conservation Area Highland Park Conservation Area Loudon Avenue Rehabilitation District Melrose Rehabilitation District Fallon Park Rehabilitation District Morningside Rehabilitation District Kenwood Rehabilitation Distr~ct · ashmgton Park Neighborhood In general, each o~ these neighborhoods has a si8ni~icant degree of housing deterioration, especially of rental property. The Rental Rehabilitation Program is expected to make a valuable contribution to the revitalization of these older neighborhoods. Each of these areas meets the criteria established by program regula- tions, as follo~s~ Median incomes not exceeding 80% of median income for the Roanoke area. According to the 1980 census, the median household income in the Roanoke SMSA was 515,11i), of which 801~ was 512,895. The median income of each o! these neighborhoods was below this figure and ranged from S6,sl~ to 511,750. Rents affordable to lower income families~ The ii)BO Census reports that these neighborhoods had median contract rents between S7B and SI3G, compared to city-wide median of SI§0. Gross rents, including estimated costs of utilities) ranged from 5155 to 52~)0. At the same time) the Section 8 Fair Market Rents, including uti- lity allowances) were S265 for a two-bedroom unit, and 5306 for a three-bedroom unit. At this time, the prevailing rents, with uti- lities, in these areas are in the S250-S~00 range, with few beyond this range. Expected rent stabilit),. While each of the eligible neighborhoods has experienced rehabilitation of some buildings in recent years, there is no evidence of significant "gentrification" or rapidly rising property values or rents, or displacement that might be associated. There are no known significant developments planned in any of these areas that would cause the rents to increase dramati- cally in the next five years. Rental Rehabilitation Program Page 5 D. Selection. Criteria Program applicants satisfying the basic general conditions listed earlier will be selected competitively based on a number of con- siderations. The 100-point evaluation scale, outlined below, will give priority to projects involving lower income or very low income tenants, larger apartments, and small buildings. Evaluation Scale Factor Current Occupancy: Very low income families Lower income tenant Vacant Tenant not of lower income Size of Unit(s): Three bedrooms or more Two bedrooms One bedroom Number of Units in Building: Two to four units Single unit building Five to seven units Loan to Value Ratio (with rehabilitation financing): (15) 60% or less 61% - 85% 86%- 100% SCore (20) 20 10 10 0 (15) 15 10 0 15 0 Cash Flow--The proportion of debt service payments as a part of the projected feasible rental income (15) Less than 60% 60% - 70% 71% - 80~ General Desirability (considering impact on community revitalization, consistency with program goals, etc.) 15 10 0 15 10 0 _,,(20) 100 In some cases, the scoring of some factors will have to be "prorated.', For example, a triplex with two two-bedroom units and one single bedroom unit would be rated 7 in the Size of Units category. Rental Rehabilitation Program Page 6 The Evaluation Scale will be applied as long as it is effective in meeting the requirements of program regulations. However, if it appears that some requirements will not be met, e.g. 70~ of the units assisted being of two or more bedrooms, or that a high-rated application just is not suitable for the Program, application of the scale may be compromised to insure compliance with Program requirements and objectives. This scale will be applied to those applications received during the ini- tial application period and is based on the expectation that more applica- tions will be received than can be funded. If this does not prove to be the case, a minimum acceptable score will be established (e.g. a score of 50) and applications meeting or exceeding this minimum score will be pro- cessed and approved as they are received, consistent with the intent of the program. The Program design and use of the Evaluation Scale address several of the mandates of the Program~ as follows: Lower income benefit...The Current Occupancy factor gives priority to units occupied by iow or very low income tenants~ or vacant units into which lower income tenants might locate after rehabilitation. In addition, this will be monitored through the processing of applications to insure maximum feasible benefit to lower income. However~ it is expected that some buildings whose rehabilitation would be valuable to the community as well as low income tenants may also have some units occupied by tenants not of lower income. The displacement of such tenants is to be avoided in the interest of neighborhood stability as well as fairness to the individual. To deal with such instances of high priority to a neighborhood and to allow ~or unforeseeable circumstances~ the City requests reduction of the 100% lower income benefit standard to 70~. This request is pursuant to infor- mation and input received from resident organizations of affected neigh- borhoods, apartment owners~ and agencies serving lower income clientele. (See also Section IV A.) Housing for families.. The Size of Unit(s) factor gives heavy priority to projects with two, three~ or more bedrooms. This item too will be moni- tored as applications are processed~ to insure that at least 70~ of rehabi- litation funds are used Ior large units. Characteristics of rental housing stock in the eligible neighborhoods indicate this standard will be met easily. Substandard units occupied by very low-income familia : All units receiving ass[stance under the Program must be substandard. Those currently occupied by families of very low income are afforded greater weight by the Evaluation Scale (see "Lower income benefit" above in this section). Efficient use of Pro,ram fund,.. The Program design will leverage at least two dollars of private funds for rehabilitation from the Virginia Housing Fund for every dollar of subsidy. In addition Program funds will revolve Rental Rehabilitation Program Page 7 back to the City for reuse in 5 or 10 years, depending on the financing option selected by the property-owner. The terms of the financing package (i.e. low interest rate on the bulk of the financing, deferred payment loan on the remainder) is expected to be attractive to investor owners. Financial feasibility: Each DPL provided by the Program will be secured by a deed of trust on the property. The total of all indebtedness against the property, including the DPL, may not exceed 95% of the appraised after- rehab value. A11 approved projects must also show a positive cash flow with a margin for maintenance, vacancy loss and contingencies. Priority wi1! be given to properties with lower loan-to-value ratios and more com- fortable cash flow margins, thereby showing stronger financial feasibility and greater incentive to the property owner to abide by the terms of the DPL (e.g. maintenance of the property to Section g standards). Each applicant will be counseled that the Program design is such that the feasibility of the rehabilitation must be based on market, unsubsidized rents, and that if proiected cash flow is not sufficient without subsidized rents, the rehabilitation may not be feasible. III. Administrative Organization and Procedurc~: The Rental Rehabilitation Program will be administered jointly by the City and the Roanoke Redevelopment and Housing Authority (RRHA). The RRHA has agreed to cooperate with the City in the administration of the Program, through the administration of the financing package as well as Housing Voucher and/or the Section 8 rent subsidies that may apply directly or indirectly to the Program. A program management team will be formed to include at least the following: H. Wesley White, 3r., Land Planning/Subsidized Housing Director Roanoke Redevelopment and Housing Authority P.O. ~)ox 6329 Roanoke, Virginia 2~017 703-983-920(~ Dan Pollock, Housing Development Coordinator Room 170, Municipal Building 215 Church Avenue, S.W. Roanoke, Virginia 2~011 703-981-2221 RRHA Rehabilitation Inspector The program management team will be responsible for generat program admi- nistration and assignment of specific tasks, including: Rental Rehabilitation Program Page 8 Program Publicity, Marketing~ and Outreach: The principal point of contact for Program information will be the RRHA. Receipt and Initial Screening of Preliminary Proposals.: Preliminary proposals will contain basic information about the project, such as location, number and size of units to be rehabilitated, general description and estimation of cost of repairs, current indebtedness that will remain on the property, projected rental income and expenses, characteristics of current occupants, etc. These basic proposals will be submitted to the RRHA, who will immediately review each upon its receipt to determine completeness and basic eligibility. Preliminary Property Inspection: The rehabilitation inspector will perform a cursory inspection of each unit proposed to be rehabilitated under the Program, to verify that the units are substandard and in need of repair. Prioritization: If sufficient proposals are received after advertise- ment of the Program to require competitive ranking, the program manage- ment team will apply the Evaluation Scale to determine which proposals appear to be best suited to the intent of the Program. If there are not enough eligible proposals to exhaust the funds allocated, the team will determine whether each proposal meets minimum requirements. Tentative commitments will be issued to those receiving the highest rankings or meeting minimum standards, contingent on verifications of information presented. The RRHA then will request the necessary finan- cial verifications and direct the applicant to obtain an appraisal of after-rehab value and a complete detailed set of plans, specifications, and contractor's bids. Final Review and Selection: The program management team will review the application packages to verify the eligibility and feasibility of the project. This review will include the rehabilitation inspector verifying that the rehabilitation work specified in the proposal is appropriate and sufficient to meet Building Code and Section HQS stan- dards. When determined that the proposal meets the criteria for the Program, arrangements will be made to close the loans, escrow the reha- bilitation financing, and begin the rehabilitation. Rehabilitation: Arrangement for rehabilitation work to be performed will primarily be the responsibility ol the applicant property owner. Periodic in-progress inspections will be made by the rehabilitation inspector.~ relative to compliance with the work write-up and work- manship standards, and by City building inspector(s), to assure compliance with code requirements. Final inspections will be performed by a Section 8 housing inspector (to verify compliance with Section 8 Housing Quality Standards), a City building inspector (to confirm Certificate of Occupancy quality), and the rehabilitation inspector. Rental Rehabilitation Program Page 9 Post-Rehabilitation Monitoring,; Property owners will be asked to sub- mit brief periodic (probably quarterly) reports of the status of each project, especially concerning rents and tenants. Blank report forms will be sent by the RRHA to the owner for completion and return. In addition, on at least an annual basis, a Section 8 housing inspector, rehabilitation inspector, or City building inspector will perform an on-site inspection to verify that each unit is maintained in accordance with the terms of the DPL. The tentative timetable for the Program is as follows: Approval of Program funding Approval of Virginia Housing Fund allocation for Program Advertise for proposals Screen proposals and perform initial inspections Select first high priority projects per Evaluation Scale; request financial verifications, etc. Verifications received and first financing packages approved Hold first loan closings Begin first rehabilitation by end of 3une by end of 3uly by end of August by end of September by mid October by mid November by end of November December 1988 It is projects according to the following schedule-. First Quarter (3uly - September 1988) Second Quarter (October- December 1988) Third Quarter (3anuary - March 1989) Fourth Quarter (April - 3une 1989) expected the Program subsidy funds wil! be committed to specified 0 $ 50,000 67,000 25~000 $1a2,000 Rental Rehabilitation Program Page lO IV. Certilications=' A. Public Consultation= The proposed Rental Rehabilitation Program has been presented and discussed with representatives of resident organizations of neigh- borhoods affected, public and private non-profit agencies concerned with housing issues of lower income tenants, and organizations of ren- tal property owners, as well as many individuals, This Program design reflects concerns, attitudes, and expectations expressed from these quarters, Also as a result of these public consultations, the City requests reduction of the lower income benefit standard to 70%, in order to avoid displacement of tenants in otherwise high priority pro- jects, to provide for unexpected contingencies that cannot be foreseen in the rental property markets of eligible neighborhoods, and to allow for unexpectedly low rehabilitation expenses resulting in more units rehabilitated than Housing Vouchers or Section g certificates awarded, Nondiscrimination and Equal Opportunity= The City and the RRHA will provide detailed guidelines to applicant owners describing their obligations for fair housing practices, These may include procedures to notify the RRHA and other community or ser- vice agencies of vacancies, posting of Equal Housing Opportunity logo- type of premises, public advertisement of vacancies, etc. These requirements will be conditions of the deed of trust for the DPC. Evidence of compliance will be examined by the RRHA at least annually, at the time of on-site inspection. Violation of fair housing and non- discrimination provisions will be grounds for requiring payment of the DPL as specified in the deed of trust. Tenant Assistance Policy= All reasonable efforts will be made to avoid involuntary displacement of tenants due to rent increases, especially tenants of lower income. Tenants who would have to pay more than 30% of their adjusted income for rent after rehab will be offered rental assistance. In no case will a very low income family be displaced involuntarily by a tenant not o! very low income. Any low-income tenant who is eligible for Section 8 or Housing' Voucher assistance will be given preference for such assistance to stay in the renovated unit or to find adequate housing elsewhere. Each tenant in a unit to be rehabilitated under the Program will be counseled about the effect of the rehabilitation on him/her. The RRHA will insure that information is provided to all tenants, and individual counseling afforded to all those in jeopardy of being displaced invo- luntarily. This counseling will at least include descriptions of alternative housing opportunities, ways to search for suitable Rental Rehabilitation Program Page l ! alternative arrangements~ and tenant rights under the Federal Fair Housing law. Direct referrals to other apartments also may be made. No tenant offered decent, safe, and sanitary housing at an affordable rent (as defined in 2q CFR 511.10[hlrt]) will be considered to be displaced. Any tenant displaced involuntarily by the Rental Rehabilitation Program shall receive priority consideration for available Section 8 Certificates, Housing Vouchers and public housin8 units administered by the RRHA. D. Neighborhood Preservationz Rehabilitation of rental property without displacement of current resi- dents will enhance the preservation and revitalization of affected neighborhoods. The improvement of rental properties will supplement substantial investments made in owner-occupied homes over the last few years. Rehabilitation proposed in parts of the Hurt Park and Highland Park Conservation Areas designated the Southwest Historic District will be reviewed for sensitivity to historic preservation, in accordance with the Memorandum of Agreement with the Virginia Division of Historic Landmarks. E. Compliance with Applicable Regulations: Administration of the Rental Rehabilitation Program will comply with all applicable federa! regulations and requirements, including but not limited to those concerning nondiscrimination and equal opportunity, as identified in 2~ CFR 5II.!0(m). F. Authority to Apply.' The City and the Roanoke Redevelopment and Housing Authority are legally authorized to develop and administer housing rehabilitation and rent subsidy programs within the City, such as this Rental Rehabilitation Program. RENTAL REHABILITATION PROGRAM EQUAL OPPORTUNITY AND NONDISCRIMINATION POLICIES AND GUIDELINES General Policy: It is the Policy of the City of Roanoke and the Roanoke Redevelopment and Housing Authority (RRHA) to administer the Rental Rehabilitation Program so that individuals of similar income have similar available housing choices, regardless of race, color, religion, sex, national origin, or handicap. Each property owner applying for participation in the Rental Rehabilitation Program shall agree to avoid any discrimination on the basis of race, color, religion, sex, national origin, or handicap, and shall agree to market their vacant rental units in good faith to inform and attract eligible tenants from all racial, ethnic, and gender groups. A. The RRHA shall give a copy of these Policies and Guidelines to the following: 1. Applicant property owners. 2. Current tenants and tenants applying to the RRHA for housing rehabilitated under the Program. Social service agencies, including Total Action Against Poverty (TAP), League of Older Americans (LOA), Legal Aid Society, and Roanoke Neighborhood Alliance. #. Resident organizations of affected/eligible neighborhoods. General public, upon request. In addition, all advertisements, press releases, information packages, application forms, and written communications prepared by the RRHA relative to the Rental Rehabilitation Program shall include the Equal Housing Opportunity logo or statement. If the participating property owner wishes) the RRHA shall refer holders of Section 8 certificates or housing vouchers to the rehabili= rated property for possible occupancy. As pi'ovided in 2g CFR 5 t t. 10 (m) (2), to the extent rent-subsidized tenants occupy Rental Rehabilitation units, other affirmative marketing procedures will not be required of the property owner. For any occupancy other than by tenants holding rental subsidy authorizations, the property owner must follow the procedures established in Section C (infra). Other than as allowed in Section B (supra), each participating property owner shall seek to attract tenants regardless of race, color, reli- gion, sex, national origin, or handicap, of ail minority and majority groups, especially those unlikely to apply without special outreach, to units vacant after rehabilitation or that later become vacant. These marketing efforts shall include, at a minimum, the following: ^dvertisement of any and all vacancies in the Roanoke Times and World News and the Roanoke Tribune, such advertisement to include the Equal Housing Opportunity logo or statement. Such adver- tisements will specify that vacant units are available for, but not limited to, Section 8 tenants. Notification to the RRHA and TAP of any and all vacancies. This notice will be forwarded by the RRHA to other service agencies and organizations. The RRHA may notify people on the Section 8, Housing Voucher, and public housing waiting lists of the vacancy. Posting of Equal Housing Opportunity poster, provided by the RRHA, on vacant premises and rental offices, if existing. Documentation: Each participating property owner shall document affir- mative marketing, such records to include the following: 1. Copies of all advertisements, notices, and other outreach for all vacancies. 2. A log of all contacts with potential tenants, including race, sex, approximate age, and reasons for not accepting as tenants. Quarterly reports to the RRHA, in a format provided by the RRHA, regarding the occupancy of all assisted units and marketing activities for any vacancies. The RRHA shall keep records including the following: I. A log of vacancies reported by owners. 2. Copies or other evidence of notices regarding the Program and vacancies sent to agencies and/or organizations by the RRH^. 3. A log of referrals made to vacant units, including race, sex, and approximate age. Copies of advertisements placed by owners. 5. Records of characteristics of tenants occupying units, including race, sex, and approximate age. Assessment: The RRHA shall use the quarterly reports filed by property owners to verify compliance with affirmative marketing and Equal l~ousing Opportunity requirements. In addition, the RRH^ and/or the City may make other periodic inspections of the property owner's records concerning tenants and marketing activities, or ask for other information about the same. Violations: Failure to comply with Equal Opportunity, Nondiscrimina- tion, or Affirmative Marketing requirements will result in a written notice from the RRHA to the property owner that specific provisions of the Deed of Trust between the two parties have been violated, defining what corrective actions, if any, are to be taken, and advising that further violations or failure to take the prescribed actions may require repayment of the Deferred Payment Loan and/or other financing provided. Office of ~he Ciiy CJe~ ~ay 3, 1989 Fi le ~ ~r. W. Robert Herbert City Manager Roanoke, Virginia Dear Mr. Herbert: I am attaching copy of Ordinance Ho. 29534 accepting a Rental Rehabilitation Program Grant from the United States Department of Housing and Urban Development, and authorizing execution of the requisite grant agreement and the HUD funding Approval Form, which Ordinance No. 29534 was adopted by the Council of the City of Roanoke at a regular meeting held on Monday, May 1, 1989. Sincerely, Mary F. Parker, CMC City Clerk MFP:ra pc: Mr. Herbert D. McBride, Executive Director, Roanoke Redevelopment and Rousing Authority, 2624 Salem Turnpike, H. W., Roanoke, Virginia 24017 Mr. William F. Clark, Director of Public Works Mr. Ronald H. Miller, Building Co.vnissioner/Zoning Administrator Mr. Oaniel H. Pollock, Housing Development Coordinator Ms. Marie T. Pontius, Grants Monitoring Administrator Room 456 Municipal Building 21§ C~urch Avenue S.W Roanoke, 'virg,nia 240t t (703) 98t-2541 IN THE COUNCIL OF THE CITY OF ROANOKE, The 1st day of May, 1989. No. 29534. VIRGINIA, AN ORDINANCE accepting a Rental Rehabilitation Program Grant from the United States Department of Housing and Urban Development, autho- rizing the execution of the requisite grant agreement and HUD Funding Approval Form; and providing for an emergency. BE IT ORDAINED by the Council of the City of Roanoke that: 1. The offer of a grant for Fiscal Year 1989 from the United States Department of Housing and Urban Development in the amount of $106,000 for rehabilitation subsidies for the City's Rental Rehabili- tation Program is ACCEPTED. 2. The City Manager or the Assistant City Manager and the City Clerk are hereby authorized on behalf of the City to execute and attest, respectively, the requisite grant agreement with the United States Department of Housing and Urban Development and HUD Funding Approval Form in order to accept such grant from the said Department; such grant agreement to be approved as to form by the City Attorney. 3. In order to provide for the usual daily operation of the municipal government, an emergency is deemed to exist, and this ordi- nance shall be in full force and effect upon its passage. ATTEST: City Clerk. Roanoke, Virginia May 1, 1989 Honorable Mayor and Members of Council Roanoke, Virginia Dear Members of Council: Subject: 1989 Rental Rehabilitation Program - Execution of Grant Agreement with Dept. of Housing and Urban Development (HUD) I. Background Rental Rehabilitation Program is a cooperative program among (HUD), the City, and the Roanoke Redevelopment and Housing Authority (RRHA), to encourage rehabilitation of privately-owned rental property in targeted neighborhoods. HUD Program funds pay a portion of the rehabilitation cost of substan- dard houses, with the balance of the rehabilitation paid from other sources. Co Roanoke's allocations from HUD for the previous five years of the Rental Rehabilitation Program totalled $671,300 for rehabilitation sub- sidies. These allocations will have provided renovation to approxima- tely 131 dwelling units in approximately 70 buildings at a cost of approximately $2~161~000 (combined public and private funds). Roanoke's Program designs have varied over recent years, depending on available financing for the non-HUD funded rehabilitation· For the first ~ years of the Program (198#-87) City's allocations from HUD paid one-third of rehabilitation costs, but because property-owners had to rely on conventional financing for the balance, the HUD funds were not expected to be repaid. 1988 Program design (subject of separate report) includes supple- mental financing from VHDA 0 7% interest over 10 years. This allows the HUD funds to be provided for one-third of the cost as a 0% interest loan with a lump sum repayment to the City after 10 years. 3. 1989 Program design, submitted to HUD in January (Attachment A) is based on obtaining supplemental funds from the Virginia Housing Partnership Fund, generally at 6% interest over 15 years. Such an allocation of funds, which will be applied for later this spring, will allow the HUD funds to be loaned for up to one-half of the rehabilitation costs [a 0% interest repayable monthly over 10 years. (See Attachment A, Section II A, "Form of Rehabilitation Subsidy".) II. Current Situation A. Roanoke's 1989 Program allocation from HUD is $106~000. May 1, 1989 Page 2 Ce City's application for 1989 Program funds has been approved by HUD. The City must execute the Grant Agreement with HUD to accept these funds (Attachment B). Memorandum of Understanding with RRHA for administration ol the 1989 Program will be required. However, this will not be necessary until arrangements are made tot supplemental financing from the Virginia Housing Partnership Fund. III, Issues A. Consistency with the recommendations of the Housing Development Strategic Plan Task Force B. Impact on neighborhood revitalization C. Housing opportunities for disadvantaged citizens D. Cost to the City E. Timing IV. Alternatives Authorize the City Manager to execute the Grant Agreement with HUD, accepting the 1989 Rental Rehabilitation Program funds in the amount of $106,000 (Attachment B), the Agreement to be approved as to form by the City Attorney. Any additional agreements required of the City for the Rental Rehabilitation Program will be presented separately for Council's consideration at the appropriate times. Consistency with the recommendations of the Housing Development Strategic Plan Task Force would be achieved by matching and multiplying available resources, and providing for long-term funding through loan repayments (General Policy 5); and accepting allocations to support rehabilitation of substandard rental units (Goal 7, Objective A, Activity 1). Impact on neighborhood revitalization would be positive. The 5106,000 allocation to Roanoke will support additional funds sought from the State. When all funds from all sources are considered, the Program should produce a total of approximately $318,000 of rehabilitation. Approximately 18 substandard dwelling units will be renovated under this phase of the Program. In addition, long- term revitalization would be enhanced by repayment of HUD funds to the City for reuse over 10 years to renovate other rental units or for other uses approved by HUD. May 1, 1989 Page 3 Housing opportunities for disadvantaged citizens would be enhanced by the improvement of about 18 units that will be expected to be reserved for low-income occupancy for 10 - 15 years. Cost to the City will be nothing. The Program grant is reserved by HUD for the City, and is drawn on by the RRHA as the administering agent, but does not actually come to the City or appear in its finances. No City matching funds are required. The City will benefit from higher values of rehabilitated buildings. Administration of the Program will be provided for by the contract for services between the RRHA and the City with existing staff. Timing is such that the Grant Agreement should be executed and returned to HUD promptly. However, no implementation of the 1989 Program will occur until FY 1989-90, after completion of the 1988 funded Program and arrangements for supplemental financing are made (I D (3) above). Do not authorize the City Manager to execute the Grant Agreement with HUD accepting the 1989 Rental Rehabilitation Program Funds. Direct the City Manager to rescind the application submitted. Consistency with the recommendations of the Housing Development Strategic Plan Task Force would be violated by refusing federal resources to improve the City's housing conditions and oppor- tunities. Impact on neighborhood revitalization would be negative. About 18 substandard rental units in 8 - 12 houses would continue to deteriorate, have a blighting effect on neighborhoods, and pose health and safety hazards. Housing opportunities for disadvantaged citizens would be hindered, in that about 18 fewer substandard units would be repaired to be available for rent to low-income families. Cost to the City would be increased due to lost tax revenue from the upgraded buildings~ and to the staff attention required by substandard housing. 5. Timing is such that HUB should be informed without further delay of the City's decision. V. Recommendation Adopt Alternative A, thereby authorizing the City Manager to execute the Grant Agreement with HUD accepting 1989 Rental Rehabilitation Program Funds (Attachment B)~ the Agreement to be approved as to form by the City Attorney. May l, 1989 Page q WRH:HDP:bc Attachments CC: City Attorney Director of Finance Director of Public Works Building Commissioner Housing Development Coordinator Grants Monitoring Administrator Executive Director, RRHA (CR.9,.10) Respectfully submitted, W. Robert: Herbert City Manager Rental Rehabilitation Pro,ram Background Roanoke is a city of approximately 100,000 citizens housed in ~2,500 dwelling units. Like most cities, Roanoke has had periods of rapid growth and of stability. The last 30 years has been a time of maturation for the City. Compared to the Roanoke metropolitan area, the City's housing stock is relatively old, more likely to be rental property, and more likely to be in need of repair. Two-thirds of all housing units in the City are more than 25 years old. Almost half are more than 45 years old. ~/ith age comes the need for substantial repairs or renovations and more diligent preventive main- tenance. Because of the expense, many owners have deferred taking these measures, without which the houses have tended to deteriorate at an acce- lerating pace. The too frequent result of this can be seen in the figures for vacant housing units (about 2,600) and values of single-family houses (20% are assessed at less than $20,000; 7% at less than $10,000.) The City of Roanoke and the Roanoke Redevelopment and Housing Authority have administered a variety of neighborhood revitalization programs over recent years. Most of these programs and the funds allocated to them have been targeted toward the rehabilitation of owner-occupied houses in neigh- borhoods designated as Conservation Areas or Rehabilitation Districts under Virginia law. This concentration has begun to have a significant positive effect in these neighborhoods. However, a large proportion of the housing stock in the aforementioned areas is rental property (50%, compared to 39% City-wide), of which a sizable percentage are in fair to poor condition. The incentive for pri- vate investments to be made in owner-occupied homes in these neighborhoods is weakened by nearby rental units in disrepair. It is obvious that the upgrading of deteriorated rental property must be a critical element of overall neighborhood revitalization. Past and current programs for rehabilitation of rental property have con- sisted of Section S/Moderate Rehabilitation and Substantial Rehabilitation/ Public Housing. ~/hile each of these programs has contributed to the improve- ment of housing stock, neither is designed to encourage a strong role by the private, unsubsidized rental market in neighborhood revitalization. The Rental Rehabilitation Program described herein is designed to attract private investment while maintaining flexibility in an area's housing market, by the direct rehabilitation of approximately 15 rental housing units that may be occupied by lower income families. Indirectly, the improvement of these units will encourage maintenance and repair to other rental and owner-occupied buildings nearby. Rental Rehabilitation Program Page 2 II. Program Design A. Form of Rehabilitation Subsidy The City's Rental Rehabilitation Program will offer a complete financing package, blending Rental Rehabilitation Program funds with loan funds made available by the Virginia Department of Housing and Community Development from the Virginia Housing Partnership Fund. Specifically, the arrangements will be as follows: Loans from allocations to Roanoke from the Virginia Housing Partnership Fund will be the source of up to two-thirds of the rehabilitaion funds, and possibly for purchase if one is involved, the financial figures allow, and the applicant wishes. At this time, the limits of this funding are 510,000 for a one-bedroom unit, 512,500 for a 2-Bedroom, and $15,000 for a 3-bedroom. Financing of those repairs determined to be energy-conserving will be in the form of a 0% loan forgiven over an 8-year term. Other repairs will be financed (a 6% interest over 15 years. Rental Rehabilitation Program funds from HUD's program allocation will finance the balance of the rehabilitation, up to one-half of the total rehabilitation costs or the per-unit maximum HUD allows. This supplement will be in the form of a 0% interest loan amortized over a 10-year term. Following are examples of the financing package based on a duplex of 2-bedroom units: Scenario A (Maximum subsidies allowed): 540,000 total rehabilitation, including $5,000 energy-conserving 5 5,000 forgiveable loan for energy conserving $ 0 $20,000 loan from state funds (~ 6%, 15-yr. $169/month 515,000 loan from HUD Funds 0 0%, 10-yr. 5125/month $29#/month After 10 years, payment goes to $169/month for 5 years. Scenario B: 530,000 total rehabilitation, including $2,500 energy-conserving 5 2,500 forgiveable loan for energy-conserving 5 0 517,500 loan from state funds ~ 6%, 15=yr. 51#8/month $10,000 loan from HUD funds (~ 0%, 10-yr. 5 83/month $231/month After 10 years, payment goes to $1~8/month for 5 years. With this financing package, Rental Rehabilitation Program funds from HUD revolve back into the City for reuse over a 10-year period, allowing the future rehabilitation of more substandard ren- tal properties. R.ental Rehabilitation Program Page 3 General Conditions Each unit subsidized must be located in an area designated as eli- gible for the Program (see Section IIC following). Each unit subsidized under the Program must be substandard according to either Section 8 Housing Quality Standards (HQS) or the City's Building Code. Minimum loan underwriting criteria will be established for pro- jects to be financed under the Program, relating to: --Loan-to-Value ratios --Income and cash flow --Personal financial condition of the applicant. Each unit subsidized under the Program must be renovated to at least Section 8 HQS and be certified by the City Building Department to be safe to occupy according to the Virginia Uniform Statewide Building Code (USBC). As part of the rehabilitation, improvement of the exterior appearance of the building will be con- sidered a priority. 10. Any unit rehabilitated under the Program must receive work costing at least $6,000. Each unit must be maintained at least to Section 8 HQS and USBC standards for the term of the financing, whether occupied by Section 8 tenants or not. A portion of the units in each project will be required to be reserved for low-income tenants according to the requirements of the Virginia Housing Partnership Fund. No unit rehabilitated under the Program may be converted to a con- dominium or cooperative for the term of the financing. There may be no discrimination against a prospective tenant because of receipt of or eligibility for housing assistance, or because of residence with a minor child, for the term of the financing. Each property owner will agree to comply with applicable require- ments for nondiscrimination and "affirmative marketing" of units rehabilitated under the Program for the term of the financing. Guide- lines and procedures for property-owners will be developed jointly by the City and the Roanoke Redevelopment and Housing Authority, to insure that each owner is aware of his/her obligations in this regard. (See Attachments to this Program Description.) Rental Rehabilitation Program · Page ~ C. Areas of Eligibility The the Rental Rehabihtat~on Program ,v~,~ u~ o..ereo ~l ~fl~ attached map, including the following neighborhoods: ~dlJboFo Conservation Area Gdmer ~veDue Conservation Area Harrison Avenue Conservation Area Hurt Park ConservatLon Area Betmont Conservanon Area n,~ntan~ Park Conservation Area Loudon Avenue RehaNtitation District Metrose Rehabilitation District Fallon Park Rehabititat~on District Morningside Rehabilitation District Kenwood Rehabilitation District · ashington Park Neighborhood In general, each of these neighborhoods has a significant degree of housing deterioration, especially of rental property. The Rental Rehabilitation Program is expected to make a valuable contribution to the preservation and improvement of these older neighborhoods. Each of these areas meets the criteria established by program regula- tions, as follows: Median incomes not exceeding 80% of median income for the Roanoke area. According to the 1980 census, the median household income in the Roanoke SMSA was 516,119, of which 80% was 512,895. The median income of each of these neighborhoods was below this figure and ranged from $6,51t~ to $11,750. Rents affordable to lower income families. The 1980 Census reports that these neighborhoods had median contract rents between 578 and 5136, compared to city-wide median of $150. Gross rents, including estimated costs of utilities, ranged from 5155 to 52~0. At the same time, the Section 8 Fair Market Rents, including uti- lity allowances, were 5265 for a two-bedroom unit, and $306 for a three-bedroom unit. At this time, the prevailing rents, with uti- lities, in these areas are in the $250-5t+00 range, with few beyond this range. Expected rent stability. While each of the eligible neighborhoods has experienced rehabilitation of some buildings in recent years, there is no evidence of significant "gentrification" or rapidly rising property values or rents, or displacement that might be associated. There are no known significant developments planned in any of these areas that would cause the rents to increase dramati- cally in the next five years. Rental Rehabilitation Program Page 5 D. Selection Criteria Program applicants satisfying the basic general conditions listed earlier will be selected competitively based on a number of con- siderations. The 100-point evaluation scale, outlined below, will give priority to projects involving lower income or very low income tenants, larger apartments, small buildings, and units accessible to and usable by handicapped individuals. Evaluation Scale Factor Current Occupancy: Very low income iamilies Lower income tenant Vacant Tenant not of lower income Size of Unit(s): Three bedrooms or more Two bedrooms One bedroom Score (15) (15) 15 10 I0 0 15 10 0 Number of Units in Building: Two to four units Single unit building Five to seven units (15) 15 5 0 Loan to Value Ratio (with rehabilitation financing): (t5) 60% or less 15 61% - 85% 10 86% - 95% 0 Cash Flow--The proportion of debt service payments as a part of the projected feasible rental income (15) Less than 60% 15 60% - 70% 10 71% - 80% 0 General Desirability (considering impact on community revitalization, consistency with program goals, etc.) Handicapped Accessibility 20 5 100 In some cases, the scoring of some factors will have to be "prorated." For example, a triplex with two two-bedroom units and one single bedroom unit would be rated 7 in the Size of Units category. · ReBtal Rehabilitation Program ~age 6 The Evaluation Scale will be applied as long as it is effective in meeting the requirements of program regulations. However, if it appears that some requirements will' not be met, e.g. 70% of the units assisted being of two or more bedrooms, or that a high-rated application just is not suitable for the Program, application of the scale may be compromised to insure compliance with Program requirements and objectives. This scale will be applied to those applications received during the ini- tial application period and is based on the expectation that more applica- tions will be received than can be funded. If this does not prove to be the case, a minimum acceptable score will be established (e.g. a score of 50) and applications meeting or exceeding this minimum score will be pro- cessed and qualified as they are received, consistent with the intent of the program. The Program design and use of the Evaluation Scale address several of the mandates of the Program, as follows: Lower income benefit: The Current Occupancy factor gives priority to units occupied by low or very low income tenants, or vacant units into which lower income tenants might locate after rehabilitation. In addition, this will be monitored through the processing of applications to insure maximum feasible benefit to lower income. However, it is expected that some buildings whose rehabilitation would be valuable to the community as well as low income tenants may also have some units occupied by tenants not of lower income. The displacement of such tenants is to be avoided in the interest of neighborhood stability as well as fairness to the individual. To deal with such instances of high priority to a neighborhood and to allow for unforeseeable circumstances, the City requests reduction of the 100% lower income benefit standard to 70%. This request is pursuant to infor- mation and input received from resident organizations of affected neigh- borhoods, apartment owners, and agencies serving lower income clientele. (See also Section [V A.) Housing for families: The Size of Unit(s) factor gives heavy priority to projects with two, three, or more bedrooms. This item too will be moni- tored as applications are processed, to insure that at least 70% of rehabi- litation funds are used for large units. Characteristics of rental housing stock in the eligible neighborhoods indicate this standard will be met easily. Substandard units occupied by very iow-income families: All units receiving assistance under the Program must be substandard. Those currently occupied by families of very low income are afforded greater weight by the Evaluation Scale (see "Lower income benefit" above in this section). Efficient use of Program funds: The Program design is expected to leverage at least two dollars of non-HUD funds for rehabilitation from the Virginia Housing Partnership Fund for every dollar of HUD rental Rehabilitation sub- sidy. In addition HUD Program funds will revolve back to the City over 10 years, for reuse for rehabilitation of rental property or other eligible purposes. The terms of the financing package are expected to be attractive to investor owners. Rental Rehabilitation Program Page 7 Financial feasibility: Each part of the rehabilitation financing package provided by the Program will be secured by a deed of trust on the property The total of all indebtedness against the property, may not exceed 95% of the appraised after rehab value. All approved projects must also show a positive cash flow with a margin :[or maintenance~ vacancy loss and con- tingencies. Priority will be given to properties with lower loan-to-value ratios and more comfortable cash :[low margins, thereby showing stronger :[inancial feasibility and greater incentive to the property owner to abide by the terms of the Program (e.g. maintenance of the property to Section 8 standards). Each applicant will be counseled that the Program design is such that the feasibility of the rehabilitation must be based on market, unsubsidized rents, and that if projected cash :[low is not sufficient without subsidized rents, the rehabilitation may not be feasible. Handicapped Accessibility: Projects resulting in units that will include features making them accessible to and usable by handicapped persons will be given additional weight over those projects not doing so. The criteria for such accessibility is as provided in 24 CFR 8. Also as provided, priority to handicapped-accessible units is given less weight than that given to other mandated aspects under the Program (e.g. unit size). III. Administrative Organization and Procedures: The Rental Rehabilitation Program will be administered jointly by the City and the Roanoke Redevelopment and Housing Authority (RRHA), possibly with the assistance o:[ the Virginia Department of Housing and Community Development and the Virginia Housing Development Authority. The RRHA has agreed to cooperate with the City in the administration of the Program, through the administration of the financing package as well as Housing Voucher and/or the Section 8 rent subsidies that may be required by federal guidelines to assist tenants of selected units. A program management team will be formed to include at least the following: H. Wesley White, Jr., Land Planning/Subsidized Housing Director ¢oanoke Redevelopment and Housing Authority P.O. Box 6359 Roanoke, Virginia 24017 703-983-9204 Dan Pollock, Housing Development Coordinator Room 170, Municipal Building 215 Church Avenue, Roanoke, Virginia 24011 703-981-2221 RRHA Rehabilitation Inspector Rental Rehabilitation Program Page 8 The program management team will be responsible for general program admi- nistration and assignment of specific tasks, including: Program Publicity~ Marketing~ and Outreach: The principal point of contact for Program information will be the RRHA. Receipt and Initial Screening of Preliminary Proposals: Preliminary proposals will contain basic information about the project, such as location, number and size of units to be rehabilitated, general description and estimation of cost of repairs, current indebtedness that will remain on the property, projected rental income and expenses, characteristics of current occupants, etc. These basic proposals will be submitted to the RRHA, who will immediately review each upon its receipt to determine completeness and basic eligibility. Preliminary Property Inspection: The rehabilitation inspector will perform a cursory inspection of each unit proposed to be rehabilitated under the Program, to verify that the units are substandard and in need of repair. Prioritization: If sufficient proposals are received after advertise- ment of the Program to require competitive ranking, the program manage- ment team will apply the Evaluation Scale to determine which proposals appear to be best suited to the intent of the Program. If there are not enough eligible proposals to exhaust the funds allocated, the team will determine whether each proposal meets minimum requirements. Tentative commitments will be issued to those receiving the highest rankings or meeting minimum standards, contingent on verifications of information presented. The RRHA then will request the necessary finan- cial verifications and direct the applicant to obtain an appraisal of after-rehab value and a complete detailed set of plans, specifications, and contractor's bids. Final Review and Selection: The program management team will review the application packages to verify the eligibility and feasibility of the project. This review will include the rehabilitation inspector verifying that the rehabilitation work specified in the proposal is appropriate and sufficient to meet Building Code and Section HQS stan- dards. When determined that the proposal meets the criteria for the Program, arrangements will be made to close the loans, escrow the reha- bilitation linancing~ and begin the rehabilitation. Rehabilitation: Arrangement for rehabilitation work to be performed will primarily be the responsibility of the applicant property owner. Periodic in-progress inspections will be made by the rehabilitation inspector, relative to compliance with the work write-up and work- manship standards, and by City building inspector(s), to assure compliance with code requirements. Final inspections will be performed by a Section 8 housing inspector (to verify compliance with Section 8 Housing Quality Standards), a City building inspector (to confirm Building Code Compliance), and the rehabilitation inspector. · ~ntal Rehabilitation Program Page 9 Post-Rehabilitation Monitoring: Property owners will be asked to sub- mit brief periodic reports of the status of each project, especially concerning rents and tenants. Blank report forms will be sent by the RRHA to the owner for completion and return. In addition, on at least an annual basis, a Section 8 housing inspector, rehabilitation inspec- tot, or City building inspector will perform an on-site inspection to verify that each unit is maintained in accordance with the terms of the financing package. The tentative timetable for the Program is as follows: Approval of Program funding Approval of Virginia Housing Parnership Fund allocation for Program by mid March Advertise for proposals by end of June Screen proposals and perform initial inspections by end of July Select first high priority projects per Evaluation Scale; request financial verifications, etc. Verifications received and first financing packages approved by end of August by mid September Hold first loan closings Begin first rehabilitation by mid October by end of October November 1989 It is expected the Program subsidy funds will be committed to specified projects according to the following schedule: First Quarter (April- June 1989) Second Quarter (July - September 1989) $ 10,000 Third Quarter (October - December 1989) 96,000 Fourth Quarter (January - March 1989) $106,000 Rental Rehabilitation Program · Page lO IV. Certifications: A. PubBc Consultation: The proposed Rental Rehabilitation Program has been presented and discussed with representatives of resident organizations of neigh- borhoods affected, public and private non-profit agencies concerned with housing issues of lower income tenants, and organizations of ren- tal property owners, as well as many individuals. This Program design reflects concerns, attitudes, and expectations expressed from these quarters. Also as a result of these public consultations, the City requests reduction of the lower income benefit standard to 70%, in order to avoid displacement of tenants in otherwise high priority pro- jects, to provide for unexpected contingencies that cannot be foreseen in the rental property markets of eligible neighborhoods, and to allow for unexpectedly low rehabilitation expenses resulting in more units rehabilitated than Housing Vouchers or Section 8 certificates awarded. B. Nondiscrimination and Equal Opportunity: rhe City and the RRHA will provide detailed guidelines to applicant owners describing their obligations for fair housing practices. These may include procedures to notify the RRHA and other community or ser- vice agencies of vacancies, posting of Equal Housing Opportunity logo- type of premises, public advertisement of vacancies, etc. These requirements will be conditions of the deed of trust for the DPC. Evidence of compliance will be examined by the RRHA at least annually, at the time of on-site inspection. Violation of fair housing and non- discrimination provisions will be grounds for requiring payment of the DPL as specified in the deed of trust. C. Tenant Assistance Policy: All reasonable efforts will be made to avoid involuntary displacement of tenants due to rent increases~ especially tenants of lower income. Tenants who would have to pay more than 30% of their adjusted income for rent alter rehab will be offered rental assistance. In no case will a very low income family be displaced involuntarily by a tenant not of very low income. Any low-income tenant who is eligible for Section 8 or Housing Voucher assistance will be given preference for such assistance to stay in the renovated unit or to find adequate housing elsewhere. Each tenant in a unit to be rehabilitated under the Program will be counseled about the effect of the rehabilitation on him/her. The RRHA will insure that information is provided to all tenants, and individual counseling afforded to all those in jeopardy of being displaced invo- luntarily. This counseling will at least include descriptions of alternative housing opportunities, ways to search for suitable alternative arrangements, and tenant rights under the Federal Fair Housing law. Direct referrals to other apartments also may be made. No tenant offered decent, safe, and sanitary housing at an affordable rent (as defined in 2t, CFR 511.10[hill) will be considered to be displaced. Any tenant displaced involuntarily by the Rental Rehabilitation Program shall receive priority consideration for available 5ection 8 Certificates, Housing Vouchers and public housing units administered by the RRHA. R~ntal Rehabilitation Program Page 1 1 D. Neighborhood Preservation: Rehabilitation of rental property without displacement ol current resi- dents will enhance the preservation and revitalization of affected neighborhoods. The improvement of rental properties will supplement substantial investments made in owner-occupied homes over the last few years. Rehabilitation proposed in parts of the Hurt Park and Highland Park Conservation Areas designated the Southwest Historic District will be reviewed for sensitivity to historic preservation, in accordance with the Memorandum of Agreement with the Virginia Division of Historic Landmarks. E. Compliance with Applicable Regulations: Administration of the Rental Rehabilitation Program will comply with all applicable federal regulations and requirements, including but not limited to those concerning nondiscrimination and equal opportunity, as identified in 20 CFR 511.10(m). F. Authority to Apply: The City and the Roanoke Redevelopment and Housing Authority are legally authorized to develop and administer housing rehabilitation and rent subsidy programs within the City, such as this Rental Rehabilitation Program. RENTAL REHABILITATION PROGRAM EQUAL OPPORTUNITY AND NONDISCRIMINATION POLICIES AND GUIDELINES General Policy: It ts the Policy of the City of Roanoke and the Roanoke Redevelopment and Housing Authority (RRHA) to administer the Rental Rehabilitation Program so that individuals of similar income have similar available housing choices, regardless of race, color, religion, sex, national origin, or handicap. Each property owner applying for participation in the Rental Rehabilitation Program shall agree to avoid any discrimination on the basis of race, color, religion, sex, national origin, or handicap, and shall agree to market their vacant rental units in good faith to inform and attract eligible tenants from all racial, ethnic, and gender groups. A. The RRHA shall give a copy of these Policies and Guidelines to the following: 1. Applicant property owners. 2. Current tenants and tenants applying to the RRHA for housing rehabilitated under the Program. Social service agencies, including Total Action Against Poverty (TAP), League of Older Americans (LOA), Legal Aid Society, and Roanoke Neighborhood Alliance. ~. Resident organizations of affected/eligible neighborhoods. 5. General public, upon request. In addition, all advertisements, press releases, inlormation packages, application forms, and written communications prepared by the RRHA relative to the Rental Rehabilitation Program shall include the Equal Housing Opportunity logo or statement. If the participating property owner wishes, the RRHA shall refer holders of Section 8 certificates or housing vouchers to the rehabili- tated property for possible occupancy. As provided in 2t~ CFR 511.10(m)(2), to the extent rent-subsidized tenants occupy Rental Rehabilitation units, other affirmative marketing procedures will not be required of the property owner. For any occupancy other than by tenants holding rental subsidy authorizations, the property owner must follow the procedures established in Section C (infra). Other than as allowed in Section B (supra), each participating property owner shall seek to attract tenants regardless of race, color, reli- gion, sex, national origin, or handicap, of all minority and majority groups, especially those unlikely to apply without special outreach, to units vacant after rehabilitation or that later become vacant. These marketing efforts shall include, at a minimum, the following: Advertisement of any and all vacancies in the Roanoke Times and World News and the Roanoke Tribune, such advertisement to include the Equal Housing Opportunity lo§o or statement. Such adver- tisements will specify that vacant units are available for, but not limited to, Section $ tenants. Notification to the RRHA and TAP of any and all vacancies. This notice will be forwarded by the RRHA to other service agencies and organizations. The RRHA may notify people on the Section ~, Housing Voucher, and public housing waiting lists of the vacancy. 3. Posting of Equal Housing Opportunity poster, provided by the RRHA, on vacant premises and rental offices, ii existing· Documentation: Each participating property owner shall document affir- mative marketing, such records to include the following: 1. Copies of all advertisements, notices, and other outreach for all vacancies. 2. A log of all contacts with potential tenants, including race, sex, approximate age, and reasons for not accepting as tenants. Quarterly reports to the RRHA, in a format provided by the RRHA, regarding the occupancy of all assisted units and marketing activities for any vacancies. The RRHA shall keep records including the following: 1. A log of vacancies reported by owners. 2. Copies or other evidence of notices regarding the Program and vacancies sent to agencies and/or organizations by the RRHA. 3. A log of referrals made to vacant units, including race, sex, and approximate age. Copies of advertisements placed by owners. Records of characteristics of tenants occupying units, including race, sex, and approximate age. Assessment: The RRHA shall use the quarterly reports filed by property owners to verify compliance with affirmative marketing and Equal Housing Opportunity requirements. In addition, the RRHA and/or the City may make other periodic inspections of the property owner's records concerning tenants and marketing activities, or ask for other information about the same. Violations: Failure to comply with Equal Opportunity, Nondiscrimina- tion, or Affirmative Marketing requirements will result in a written notice from the RRHA to the property owner that specific provisions of the Deed of Trust between the two parties have been violated, defining what corrective actions, if any, are to be taken, and advising that further violations or failure to take the prescribed actions may require repayment of the Deferred Payment Loan and/or other financing provided. U.S. Department of Housing end Urban Development Richmond Office, Region Ill P.O. Box 10170 400 N. 8th Street, 1st Floor Richmond, VA 23240-9998 Mr. W. Robert Herbert City Manager City of Roanoke P. O. Box 1220 F~oanoke, VA 24011 Dear We are pleased to inform you of the approval of your 1989 Rental Rehabilitation Program Description. You are now authorized to receive $106,000 in Rental Rehabilitation funds for your program activities. This obligation, of course, is subject to your execution of the Grant Agreement and compliance with other applicable requirements for use of the funds. Three copies of the Funding Approval Form (HUD-A001 $) and the Grant Agreement (HUD-A0015.1) are enclosed for your signature. Please sign each copy and return two of them to our Office. If I can be of further assistance to you, please call me. Should your staff need any technical advice, Mr. Leroy Brown at 804/771-2853 will be happy to help them. Very sincerely yours, G. William Thomas, Jr. Manager Richmond Field Office Enclosures Funding Approval Rental Rehabilitation Program U.S. Department of Housing and Urban Development Community Pranning HI-00527R and Development Under Section 17 of The United States Housing Act of 1937 (42 U.S.C, 1437o) 1. Name of Grantee 2, Grant No. ROANOKE R-89-MC-51-0207 3, Grantee's Address P. O. Box 1220 Roanoke, VA 24011 6.~ Original Funding Approval [] Amendment (No.) 4. HUD Geographic Locator Code No. 03-36-51-760 5. a) Date of HUD Receipt of Program Description 1/20/89 b) Date Grantee Notified of Approval c) Fiscal Year 1989 ?. Category of Rental Rehabilitation Program Grant for this Funding Action (Check Only One) a. Direct Formula Grantee [] City over 50,000 [] Urban County [] Consortium b. ~ State Grantee c. [] HUD-Administered Rental Rehabllitation Program Small City Grantee d. [] HUD-Administered City Grantee 8. Amount of Rental Rehabilitation Program (RRP) Grant FY: 89 a. Amount of RRP funds previously obligated for this grantee -O- b. Amount of RRP funds currently being obligated for this grantee $106 ~000 c. Amount of RRP funds currently being deobligated for this grantee -O- d. New total of RRP funds now obligated for this grantee 9. Special conditions (Check applicable box) a. ~ Not applicable b. [] Attached F°r: U~~et/H_o n~ U rban/~velopmen, ~ G. WILLI~ ~O~S~ ~. - / ~ ' / Date: ~er, Ric~ond Field Offic~ MAR ~ 7 ~989 ~S ~ifion {8-~) is obsolete ~ HUD-~15(11 -,4)24 CFR Pan 511 Grant Agreement U.S. Department of Housing and Urban Development Office of Community Planning and Development This Grant Agreement is made by and between the Department of Housing and Urban Development (HUD) and R0~0[<~ VIRGTNIA (the Grantee) pursuant to the authority of Section 17 of the United States Housing Act of 1937 (42 USC 14370). The Grantee's approved Program Description and the HUD regulations at 24 CFR Part 511 (as now in effect and as may be amended from time to time), which are incorporated by reference, together with the HUD Funding Approval Form 40015 and any special conditions, which are hereto attached, constitute part of this Agreement. In reliance upon and in consideration of the mutual representations and obligations hereunder, HUD and the Grantee agree as follows: 1. Subject to the provisions of this Grant Agreement, HUD will make the funding assistance for Fiscal Year 19 specified in the attached HUD Funding Approval Form 40015 available to the Grantee upon execution of the Agreement by the parties. 2. The obligation and utilization of the funding assistance provided is subject to the requirements of the regulations and any special conditions set forth in the HUD Funding Approval Form 40015, including the requirement for a release of funds by HUD under the Environmental Review Procedures at 24 CFR Part 58 for any activities requiring such release. 3. HUD's payment of funds under this Grant is also subject to the Grantee's compliance with HUD's electronic funds transfer and information reporting procedures issued pursuant to 24 CFR 511.74. 4. To the extent authorized by the HUD regulations at 24 CFR Part 511.33 and 511.82, HUD may, by its execution of an amendment to the HUD Funding Approval Form 40015 deobligate funds previously awarded to the grantee without the Grantee's execution of such form or other consent. Such a deobltgation of Rental Rehabilitation Program grant funds may also cause a recapture of a commensurate amount of Section 8 Existing Certificate or voucher contract authority. The Grantee further agrees to accept responsibility for adherence to the Agreement by subrecipient entities and property owners to which it makes funding assistance hereunder available. G~RLLIAM THOMAS, .J~. /~" Manager, Richmond Field Offic~MAR B~ralltee / Title: Date: HUD-40015.1 (11-84) 24 CFR Part 511 Funding Approval Re- tal Rehabilitation Program U.S. Department of H~using and Urban D~wlopment Comfllunity ~ecntng and Development HI-00527R Under Section 17 of The United States Housing Act of 1937 (42 U.S.C. 1437o) 1. Name of Grantee 2. Grant No. ROANOKE R-89-MC-51-0207 4. HUO Geographic Locator Co~e No. 03-36-_51-760 3. Grantee's Address P. O. Box 1220 Roanoke, VA 24011 6. X~ Original Funding Approval ~- Amendment (No.) ,5. a) Date of HUD Receipt Of Program Deecdption 1/2.0/89 b) Date Grantee Notified of Approval c) Fiscal Year 1989 7. Category of Rental Rehabilitation Program Grant for this Funding Action (Checl( Only One) a. Direct Formula Grantee I~I City over 50,000 [] Urban County r~ Conan¢dum b. [] State Grantee c. [] HUD-Administere(S Rental Rehabilitation Program Small City Grantee d. [] HUD-Administered City Grantee 8. Amount of Rental Rehabilitation Program (RRP) Grant FY: 89 a. Amount of RRP funds previously obligated for this grantee -0- b, Amount of RRP funds currently being obligated for this grantee $~.06 ~000 c. Amount of RRP funds currently being deobligated for this grantee -'0- d. New total of RRP funds now obligated for this grantee $106~000 9. Special conditions (Check applicable box) a. [~ Not applicable b. [] Attached MAR '~ ? ]989 Grant Agreement U.S. Oeparlmm~ of Housing and Urban [3e~mlof3ment Office ot Community Planning and Developmem This Grant Agreement is made by and between the Department of Housing and Urban Development (HUD) and ROA.N~[(]~ VIRGINIA (the Grantee) pursuant to the authority of Section 17 of the United States Housing Act of 1937 (42 USC 1437o). The Grantee's aoproved Program Description and the HUD regulations at 24 CFR Part 511 (as now in effect and as may be amended from time to time), which are incorporated by reference, together with the HUD Funding Approval Form 40015 and any special conditions, which are hereto attached, constitute part of this Agreement. In reliance upon and in consideration of the mutual representations and obligations hereunder, HUD and the Grantee agree as follows: 1. Subject to the provisions of this Grant Agreement, HUD will make the funding assistance for Fiscal Year 19 specified in the attached HUD Funding Approval Form 40015 available to the Grantee upon execution of the Agreement by the parties. 2. The obligation and utilization of the funding assistance provided is subject to the requirements of the regulations and any special conditions set forth in the HUD Funding Approval Form 40015, including the requirement for a release of funds by HUD under the Environmental Review Procedures at 24 CFR Part 58 for any activities requiring such release. HUD's payment of funds under this Grant is also subject to the Grantee's combliance with HUD's electrenic funds transfer and information reporting procedures issued pursuant to 24 CFR 511.74. To the extent authorized by the HUD regulations at 24 CFR Part 511.33 and 511.82, HUD may, by its execution of an amendment to the HUD Funding Approval Form 40015 decbligate funds previously awarded to the grantee without the Grantee's execution of such form or other consent. Such a deebligation of Rental Rehabilitation Program grant funds may also cause a recapture of a commensurate amount of Section 8 Existing Certificate or voucher contract authority. The Grantee further agrees to accept responsibility for adherence to the Agreement by subrecipient entities and property owners to which it makes funding assistance hereunder available, C..,U?]LTAM THOMAS, JR. /'" M~na~er~ Richmond Field Offic*'%~AR £; !~89 Funding Approval .R[-~tel Rehabilitation Program U.S. Department of HouMng and Urban D~v~lopm~t Community Planning and Development HI-00527R Under Section 17 of The United States Housing Act of 1937 (42 U.S.C. 1437o) 1. Name of Grantee 2. Grant No. ROANOKE R-89-MC-51-0207 4. HUD Geographic Locator Cocle No. 03-36-51-760 Grantee's Addmss P. O. Box 1220 Roanoke, VA 24011 6. X.~ Original Funding Approval --~ Amendment (No.) 5. a) Data of HUD Receipt of Program Description 1/20/89 b) Date Grat~tee Notified of Approval c) ~scal Year 1989 7. Category of Rental Rehabilitation Program Grant for this Funding Action (Check Only One) a, Direct Formula Grantee ~] City over 50,000 ~ Urban County ~ Ceeso~um b. ~ State Grantee c. ~ HUD-Administered Rental Rehabilltation Program Small City Grantee d. ~ HUO-Administm'ed City Grantee 8. Amount of Rental Rehabilitation Program (RRP) Grant FY: 89 a. Amount of RRP funds previously obligated for this grantee -0- b. Amount of RRP funds currently being obligated for this grantee $106 t000 c. Amount of RRP funds currently being deobligated fo~ this grantee d. New total of RRP funds now obligated for this grantee $206,000 9. Special conditions (Cbecl< applicable box) a. [~ Not applicable b. ~ Attached Offic~ UAR ~-~G. WTLT.IAbl 'I'HOMAS~ JR. /' -- IManager, Richmond Field Z ? 1§8§ Grant Agreement U.S. Depa~ment of Housing and Urban Development Office of Community Planning ancl Development This Grant Agreement is made by and between the Department of Housing and Urban Development (HUD) and ROANOKE, VIRGINIA (the Grantee) pursuant to the authority of Section 17 of the United States Housing Act of 1937 (42 USC 14370). The Grantee's approved Program Description and the HUD regulations at 24 CFR Part 511 (as now in effect and as may be amended from time to time), which are incorborated by reference, together with the HUD Funding Approval Form 40015 and any special conditions, which are hereto attached, constitute part of this Agreement. In reliance upon and in consideration of the mutual representations and obligations hereunder, HUD and the Grantee agree as follows: 1. Subject to the provisions of this Grant Agreement, HUD will make the funding assistance for Fiscal Year 19 sbecified in the attached HUD Funding Apbroval Form 40015 available to the Grantee upon execution of the Agreement by the parties. 2. The obligation and utilization of the funding assistance provided is sul)ject to the requirements of the regulations and any special conditions set forth in the HUD Funding Approval Form 40015, inctuding the requirement for a release of funds by HUD under the Environmental Review Procedures at 24 CFR Part 58 for any activities requiring such release. HUD's payment of funds under this Grant is also subject to the Grantee's compliance with HUD's electronic funds transfer and information redortlng procedures issued pursuant to 24 CFR 511.74. To the extent authorized by the HUD regulations at 24 CFR Part 511.33 and 511.82, HUD may, by its execution of an amendment to the HUD Funding Approval Form 40015 deobligate funds previously awarded to the grantee without the Grantee's execution of such form or other consent. Such a decbligation of Rental Rehabilitation Program grant funds may also cause a recapture of a commensurate amount of Section 8 Existing Certificate or voucher contract authority. 5. The Grantee further agrees to accept responsibility for adherence to the Agreement by subrecipient entitles and property owners to which it makes funding assistance hereunder available. Date: Richmond Field Offic~ Date: DATE: TO: FROM: SUBJECT: May 1, 1989 Honorable Mayor and Members of City Council W. Robert Herbert and Joel M. Schlanger Cost of Living Raise for Retirees We have evaluated the request of the City of Roanoke's retirees and this letter will serve as our recommendation to you to be considered for budget study. Certain members of the City of Roanoke Pension Plan have not received a permanent cost-of-living adjustment since July 1, 1987, as Ordinance No. supplemental benefits be payment effective July 1, 1, 1988. 28641, dated May 11, 1987, provided that provided as a permanent cost-of-living 1987, and a lump sum payment as of July As you are aware, certain retirees have requested that future COLA's be made permanent as they felt that a one-time payment is good for one year but does not help them for future years. However, other retirees have informed us that they like the one-time payments as that provides them with a lump sum that would be spent for a major purchase or they have the alternative of budgeting the amount over the twelve month period. After much study and consideration, we recommend the following to you: Honorable Mayor and Members of Page 2 May 1, 1989 City Council That effective July 1, 1989, and payable July 31, 1989, a 3% permanent increase shall be made to a member's or surviving spouse's annual retirement allowance that meets the following criteria: 1. Any member retired under normal service with at least 10 years of creditable service; or 2. Any member retired on non-occupational disability with at least 10 years of creditable service or any member retired on occupational disability, regardless of service; or 3. Any member retired under early service retirement, vested service retirement; or 4. Any surviving spouse of a member who was entitled to a benefit, provided that the deceased member would have qualified under (1), (2), or (3) above, or 5. Any member retired under Chapter 2, Police and Fire Pensions prior to January 1, 1946, or the surviving spouse of any such member. On January 25, 1989, Mr. Ralph J. Akers, a former city employee, spoke to your Board of Trustees for the City of Roanoke Pension Plan and requested that those retirees on non-occupational disability with less than ten years of creditable service should be included in any cost-of-living raise provided to retirees by City Council. We strongly believe that a member of the System must have at least ten years of service to be eligible for any adjustments to their pension. We have followed this policy for over eight years and it has proven to be the most effective method. Honorable Mayor and Members of City Council Page 3 May 1, 1989 Out of a total number of 960 receiving benefits as of April 30, 1988, 836 general employees, or 87%, would be eligible for this increase under the above guidelines. The total annual increase in retirement allowances would be $122,360, or an average annual retirement allowance increase of $146. A 3% permanent COLA is estimated to cost $990,000 funded actuarially over 20 years. We have also received our actuarial rate for the fiscal year beginning July 1, 1989. The rate has increased from last year's rate of 12.07% to 12.61%. Following is a history of our actuarial rates for the past few years. July 1, 1983 14.10% July 1, 1984 14.89% July 1, 1985 14.85% July 1, 1986 13.69% July 1, 1987 13.15% July 1, 1988 12.07% July 1, 1989 12.61% We recommend that a one-time lump sum payment of $250,000 be paid directly into the Pension Plan from any year end balances prior to determination of the CMERP Fund at the end of fiscal year 1989 in order to partially address funding the permanent COLA for eligible members beginning July 1, 1989. We also recommend that for the fiscal year beginning July 1, 1990, that a 3--% lump sum payment be made July 31, 1990, to Honorable Mayor and Members of City Council Page 4 May 1, 1989 certain members of the City of Roanoke Pension Plan who meet the same above criteria. This 3% lump sum payment will be based on their new monthly benefit effective July 1, 1989. This increase will cost approximately $128,000 and would be funded from any year end balance at the end of fiscal year 1990 before any CMERP funds are designated. City Manager WRH:JMS:dp C~¢~ of ~e City May 3, 1989 File #2? Structures & Utilities Company, P. O. Box 2218 Christiansburg, Virginia 24068 Inc. Ladies and Gentlemen: I am enclosing copy of Ordinance No. 29535 accepting your bid for necessary repairs and improvements to alum tanks at the Water Pollution Control Plant, upon certain terms and conditions, in the total amount of $44,500.00, which Ordinance No. 29535 was adopted by the Council of the City of Roanoke at a regular meeting held on rdonday, May I, 1989. Sincerely, ~..~..._. Mary F. Parker, CMC City Clerk MFP:ra Enco pc: Mr. Mr. Mr. Mr. Ms. W. Robert Herbert, City Manager Kit B. Kiser, Director of Utilities and Operations Steven L. Walker, Manager, Water Pollution Control William F. Clark, Director of Public Works Charles ~. Huffine, City Engineer Sarah E. Fitton, Construction Cost Technician Dolores C. Daniels, Citizens' Request for Service Plant Room 456 Municipal Building 215 C~urch Av~'~u~ S.W. Roclnc~e Virginia 24011 (703) 98t-2541 IN THE COUNCIL OF THE CITY OF ROANOKE, VIRGINIA, The 1st day of May, 1989. No. 29535. AN ORDINANCE accepting the bid of Structures & Utilities Co., Inc., for necessary repairs and improvements to Alum Tanks at the Water Pollution Control Plant upon certain terms and conditions, and awarding a contract therefor; authorizing the proper City officials to execute the requisite contract for such work; and providing for an emergency. BE IT ORDAINED by the Council of the City of Roanoke as follows: 1. The bid of Structures & Utilities Co., Inc., made to the City in the total amount of $44,500.00 for necessary repairs and improve- ments to Alum Tanks at the Water Pollution Control Plant, such bid being in full compliance with the City's plans and specifications made therefor and as provided in the contract documents offered said bidder, which bid is on file in the Office of the City Clerk, be and is hereby ACCEPTED. 2. The City Manager or the Assistant City Manager and the City Clerk are hereby authorized on behalf of the City to execute and attest, respectively, the requisite contract with the successful bidder, based on its proposal made therefor and the City's specifica- tions made therefor, said contract to be in such form as is approved by the City Attorney, and the cost of said work to be paid for out of funds heretofore or simultaneously appropriated by Council, execution of such contract to be subject to approval of the appropriate sup- porting documents. 3. In order to provide for the usual daily operation of the municipal government, an emergency is deemed to exist, and this ordi- nance shall be in full force and effect upon its passage. ATTEST: City Clerk. Roanoke, Virginia May 1, 1989 Honorable Mayor and City Council Roanoke, Virginia Dear Members of Council: Subject: Bid Committee Report Alum Tank Work Water Pollution Control Plant Roanoke, Virginia I concur with the recommendations of the attached Bid Committee Report. Respectfully submitted, W. Robert Herbert City Manager WRH/LBC/mm Attachment: Bid Committee Report Cc: City Attorney Director of Finance Director of Utilities & Operations Director of Public Works Manager, Water Pollution Control Plant City Engineer Citizens' Request for Service Construction Cost Technician Honorable Mayor and City Council Roanoke, Virginia Dear Members of Council: Subject: Bid Committee Report Alum Tank Work Water Pollution Control Plant Roanoke, Virginia Roanoke, Virginia May 1, 1989 I. Background: Cit~ Council, at its April 10, 1989 meeting, publicly opened and read aloud the bid received for the Alum Tank Work at the Water Pollution Control Plant, Roanoke, Virginia. Bo One (1) bid was received with Structures & Utilities Co., Inc. submitting a total bid of $44,500.00. Time of comple- tion is 90 consecutive calendar days. Co Work shall include the removal of the inside coating from one present chemical storage tank, the repair of the walls in two tanks and the application of an impermeable coating system (fiberglas lining) to two (2) tanks, all in accordance with the Contract Documents as prepared by Clean Water Engineers, Inc. II. Issues in order of importance are: A. Compliance of the bidder with the requirements of the Contract Documents. B. Amount of the low bid. C. Funding of the project. D. Time of completion. III. Alternatives are: mo Award a lump sum contract to Structures & Utilities Co., Inc. in the amount of $44,500.00 and 90 consecutive calendar days for an impermeable coating system in two Chemical Storage Tanks at the Water Pollution Control Plant in accordance with the Contract Documents as prepared by Clean Water Engineers, Inc. 1. Compliance of the bidder with the requirements of the Contract Documents was met. Page 2 Bid Committee Report Alum Tank Work 2. Amount of the low bid is within 5% of the engineer's estimate and is acceptable. o Fundin~ of the project is available in Account No. 003-056-3155-2050, Maintenance of Buildings and Property of the Water Pollution Control Plant. 4. Time of completion is quoted as 90 consecutive calendar days which is acceptable. B. Reject the bid and do not award a contract at this time. 1. Compliance of the bidder with the requirements of the Contract Documents would not be an issue. 2. Amount of the bid would probably change if re-bid at a later date. 3. Fundin~ would not be encumbered at this time. Time of completion would be extended. The present tank linings are in very poor condition and need to be replaced as soon as possible. Structures & Utilities Co., Inc. has just completed the Bar Screens at the Water Pollution Control Plant. Their work was satisfac- tory and was done in a timely manner. IV. Recommendation is that City Council take the following action: A. Concur with the implementation of Alternative "A". Bo Authorize the City Manager to enter into a contract with Structures & Utilities Co., Inc. in the amount of $44~500.00 and 90 consecutive calendar days to reline two Chemical Storage Tanks at the Water Pollution Control Plant in accord- ance with the requirements of the Contract Documents as pre- pared by Clean Water Engineers. Appropriate the sum of $49~000.00 from the Water Pollution Control Plant Account No. 003-056-3155-2050, Maintenance of Buildings and Property, as follows: Contract Amount Project Contingency $44,500.00 4,500.00 Total $49,000.00 D. Authorize the Director of Finance to establish a Capital Account for this project entitled "Alum Tank Repairs - WPCP". Page 3 Bid Committee Report Alum Tank Work Respectfully submitted, Kit B. Kiser RAG/LBC/mm Attachment: CC: Tabulation of Bids City Manager City Attorney Director of Finance Manager, Water Pollution Control Plant City Engineer Citizen Request for Service Construction Cost Technician William F. Clark TABULATION OF BIDS ALUM TANK WORK WATER POLLUTION CONTROL PLANT ROANOKE, VIRGINIA Bids opened before City Council on April 10, 1989 at 7:30 p.m. Mobilization Repair and Coatin8 BID BIDDER Insurance~etc Tank 1 Tank 2 TOTAL BID BOND Structures & Utilities Co., Inc. $8,000.00 $22,504.00 $14,000.00 $44,500.00 YES Construction time is quoted as 90 consecutive calendar days. Engineer's Estimate: $42,500.00 Robert A. Garlad~, Chairman Kit B. Kiser William F. Clark Clean Water Engineers, Inc 7 East Main Street Fincastle, Virginia Office of City Engineer Roanoke, Virginia May 1, 1989 Office of the City Clerk April 12, 1989 File #468 Mr. Robert A. Garland, Chairman ) Mr. William F. Clark ) Cort~nittee Mr. Kit B. Kiser ) Gentlemen: The following bid for coating system removal and replacement for chemical storage tanks at the Roanoke Water Pollution Control Facility was opened and read before the Council of the City of Roanoke at a regular meeting held on Monday, April 10, 1989: BIDDER Structures & Utilities Co., Inc. Item One $ 8,000 Item Two 14,500 Item Three 5,000 Item Four 9,000 Item Five 8,000 On motion, for study, duly seconded and adopted, report and reco.~nendation the bid was referred to you to Council. Sincerely, ?g~,,~ Mary F. Parker, CMC City Clerk MFP:ra pc: Mr. Wilburn C. Dibling, Jr., City Attorney Room 4.56 Muni¢il:~l Building 215 Church Avenue, S.W P.4)anoke. Virginia 240t ~t (703) 981-254'1 Office of the City Cler~ May 3, 1989 File #27 Mr. Joel M. Schlanger Director of Finance Roanoke, Virginia Dear Mr. Schlanger: I am attaching copy of Ordinance No. 29536 amending and reor- daining certain sections of the 1988-89 Water Fund Appropriations, providing for the transfer of $38,000.00 from Water Fund - Retained Earnings to Water Purification Other Charges, in order to cover an over-expenditure and to provide necessary funds for estimated electric costs for operating the Carvins Cove Filter Plant, Falling Creek Filter Plant and Carvins Cove Low Lift Pump Station through the current fiscal year, which Ordinance No. 29536 was adopted by the Council of the City of Roanoke at a regular meeting held on Monday, May I, 1989. Sincerely, ,~ Mary F. Parker, CMC City Clerk .~FP:ra ~nc. pc: Mr. Mr. W. Robert Herbert, City Manager Kit B. Kiser, Director of Utilities and Operations Steven L. Walker, Manager, Water Pollution Control Plant Room 456 Municipal Building 215 C~urch Avenue SW Roano~,.,e Virginia 240t t (703) 981-2541 IN THE COUNCIL OF THE CITY OF ROANOKE, VIRGINIA The 1st day of May, 1989. No. 29536. AN ORDINANCE to amend and reordain certain sections of the 1988-89 Water Fund Appropriations, and providing for an emergency. WHEREAS, for the usual daily operation of the Municipal Government of the City of Roanoke, an emergency is declared to exist. THEREFORE, BE IT ORDAINED by the Council of the City of Roanoke that certain sections of the 1988-89 Water Fund Appropriations, be, and the same are hereby, amended and reordained to read as follows, in part: Appropriations Water Purification Other Charges (1) .................................. Fund Balance Retained Earnings - Unrestricted (2) ............... 1) Electric (002-056-2170-2022) $ 38,000 2) Retained Earnings - Unrestricted (002-3336) (38,000) $ 787,860 258,234 $14,928,617 BE IT FURTHER ORDAINED that, an emergency existing, this Ordinance shall be in effect from its passage. ATTEST: City Clerk. CITY Roanoke, Virginia May 1, 1989 Honorable Mayor and City Council Roanoke, Virginia Dear Members of Council: Subject: Water Fund Appropriation for Water Purification - Electric The attached staff report was considered by the Water Resources Committee at its regularly scheduled meeting on April 24, 1989. The Committee recon~nends that Council authorize the appropriation of $38,000 from the Water Fund retained earnings to Water Department Account No. 002-056-2170-2022. ETB:KBK:afm Attachment cc: City Manager City Attorney Director of Finance Director of Utilities & Operations Manager, Water Department Elizabeth T. Bowles, Chairman Water Resources Committee INTERDEPARTMENT COMMUNICATION DATE: April 24, 1989 TO: Mrs. Bowles and Members, Water Resources Cormmittee thru ' ~ . Her~e.rt Subject: Water Fund Appropriation for Water Purification-Electric I. Background: City Council approved funds in the FY88-89 Budget in the amount of $25,000.00 for Water Fund Account 002-056-2170-2022, Water Purification- Electric. This was an estimate of funds needed to cover the electric costs for operating Carvins Cove Filter Plant, Falling Creek Filter Plant and Carvins Cove Low Lift Pump Station. Raw Water normally flows by gravity from the Carvins Cove Reservoir Dam to the Carvins Cove Filter Plant when the reservoir is full. Raw water must be pumped by the Low Lift Pump Station when the water level drops 4 to 8 feet below the spillway dependent upon seasonal demand. Many years the low lift pumps are never used. Drought conditions starting in early 1988 caused the level of the reservoir to drop and required the operation of the low lift pump station continuously on a 24-hour a day basis from July 7, 1988 to the present. II. Current Situation: A. April 7, 1989 financial status of Water Fund Account Water Purification Electric shows expenditures of $45,999.82 for an over-expenditure of $20,999.82. The over-expenditure has resulted from the requirement to operate the Carvins Cove Low Lift Pump Station continuously since July 7, 1988. Appropriation of $38,000.00 from Water Fund retained earnings is needed to cover the over-expenditure and to provide necessary funding for Water Purification-Electric 002-056-2170-2022 through June 30, 1989 based on best available estimate of electric costs. III. Issues in order of priority are: A. Need. B. Funding. C. Timing. Page 2 IV. Alternatives: Ao Committee recommend Council authorize the appropriation of $38,000.00 from the Water Fund retained earnings to Water Department Account No. 002-056-2170-2022. 1. Need for the funding to cover required electric costs of the water purification system will be met. 2. Funding is available in Water Fund retained earnings. 3. Timing of funds requirement through the current fiscal year will be met. Committee not recommend Council authorize the appropriation of $38,000.00 from the Water Fund retained earnings to Water Department Account No. 002-056-2170-2022. 1. Need for funding would not be met. 2. Fundin~ source would not matter. 3. Timin~ of funds requirement through the current fiscal year would not be met and payment of electric bills would be delayed. V. Recommendation: Implement Alternative "A" by recommending appropriating $38,000.00 from Water Fund retained earnings to Water Department Account No. 002-056-2170-2022 Water Purification Electric. KBK:MCS:je cc: City Attorney Director of Finance Office of the City Clerk May 3, 1989 File #27-169 Mr. W. Robert Herbert City Manager Roanoke, Virginia Dear Mr. Herbert: I am attaching copy of Ordinance No. 29538 authorizing the appropriate City officials to enter into an agreement allowing Roanoke County to connect to the City's storm drainage system near the intersection of Williamson Road and Hildebrand Avenue, N. W., and extend pipes to drain the area near Helms Lane and Malvern Road, N. W., upon certain terms and conditions, which Ordinance No. 29538 was adopted by the Council of the City of Roanoke at a regular meeting held on Monday, Nay I, 1989. Sincerely, ~ Mary F. Parker. CMC City Clerk MFP:ra Enc. pc: Mr. Elmer C. godge. Roanoke County Administrator. P. 0. Box 29800, Roanoke, Virginia 24018-0798 Mr. Fred C. Altizer, Resident Engineer, Virginia Department of Transportation, 714 South Broad Street, Salem, Virginia 24153 Hr. Kit B. Kiser, Director of Utilities and Operations Mr. William F. Clark, Director of Public Works Mr. Charles M. Huffine, City Engineer Room 456 Municipal Building 215 C~urch Avenue SW Roanoke Virginia 24~1 t (703) 98%2541 IN THE COUNCIL OF THE CITY OF ROANOKE, VIRGINIA, The 1st day of May, 1989. No. 29538. AN ORDINANCE authorizing the appropriate City officials to enter into an agreement allowing Roanoke County to connect to the City's storm drainage system near the intersection of Williamson Road and Hildebrand Avenue, upon certain terms and conditions and providing for an emergency. BE IT ORDAINED by the Council of the City of Roanoke that: 1. The City Manager and City Clerk are authorized to exe- cute and attest, respectively, in form approved by the City Attorney the appropriate agreement permitting Roanoke County to connect to the City's storm drainage system near the intersection of ~illiamson Road and Hildebrand Avenue and extend pipes to drain the area near Nelms Lane and Malvern Road, as more par- ticularly set forth and upon the terms and conditions contained in the report to this Council dated May 1, 1989. 2. In order to provide for the usual daily operation of the municipal government, an emergency is deemed to exist, and this ordinance shall be in full force and effect upon its passage. Attest: City Clerk. Roanoke, Virginia May 1, 1989 Honorable Mayor and City Council Roanoke, Virginia Dear Members of Council: Subject: Roanoke County Storm Drainage Project - Nelms Lane The attached staff report, revised from a draft Council report format to a Committee report format, was considered by the Water Resources Committee at its regularly scheduled meeting on April 24, 1989. The Committee recon~ends that Council authorize the City Manager to enter into an agreement, in a form approved by the City Attorney, between the City, Roanoke County, and the Virginia Department of Transportation for storm drainage improvements in the vicinity of Williamson Road and Nelms Lane, N.W. ETB:KBK:afm Attachment CC: Respectfully submitted, Elizabeth T. Bowles, Chairman Water Resources Committee City Manager City Attorney Director of Finance Roanoke County Administrator Director of Utilities & Operations Director of Public Works City Engineer Fred A. Altizer, Resident Engineer, VDOT DA~: TO: FROM: April 24, 1989 ~ Water Resources Con~alttee thru Mr. Herbert SlII~-RCT: Roanoke County Storm Drainage Project - Nelms Lane The attached draft report to City Council is for your consideration. I recommend approval of the report. This is a policy matter that appropriately should be considered by this committee. KBK:afm Attachment INTERDEPARTMENT COMMUNICATION DATE: April 24, 1989 TO: FROM: Mrs. Bowles and Members, Water Resources Committee thru Mr. Herbert K. B. Kiser Subject: Roanoke County Storm Drainage Project - Nelms Lane I. Background: Drainage problem has existed for years in a low area on Nelms Lane at the intersection of Malvern Road. This is just west of Williamson Road at the Roanoke corporate limits in Roanoke County. City of Roanoke owns and maintains a storm drain system in Williamson Road and Hildebrand Avenue. This was built by the developers of Crossroads Mall and drains that area to Tinker Creek. II. Current Situation: Virginia Department of Transportation (VDOT) has recognized the undesirable situation at the Nelms Lane and Malvern Road intersection and proposed a storm sewer extension from the City's system to drain this low area. Bo Roanoke County has requested permission to connect to the City's drainage facilities in order to implement this proposal. III. Issues: City storm sewer capacity to accept the additional drainage flow. B. Cost to the City. C. Addressing Strategic Issues. IV. Alternatives: Committee recom, nend that City Council authorize the City Manager to enter into an agreement similar to the attached proposal which will allow Roanoke County to connect to the City's storm drain system near the intersection of Williamson Road and Hildebrand Avenue and extend pipes to drain the area near Nelms Lane and Malvern Road. Mrs. Bowles and Members, Water Resources Committee Page 2 City storm sewer capacity is adequate to serve this relatively small drainage area. The City retains authority to approve the project plans and can limit the system from being further extended beyond the problem drainage area which is the subject of this proposal. Cost to the City is nothin~ in that the County and VDOT are sharing equally in the estimated $121,870 total cost of the project. This will include all costs associated with the survey and plan preparation, with the acquisition of the necessary right-of-way or easements, relocation of utilities, preparation of contract documents, advertising and award of contract, administration of the contract, and payments to the contractor. No City utilities are affected by the proposed construction. Addressin8 Strategic Issues. Will support one of City Council's Strategic Issues - "Regional Approaches" by helping Roanoke County solve a neighborhood drainage problem. VDOT would also benefit as the cost of maintaining those portions of Nelms Lane and Malvern Road would be reduced. Committee not recommend that City Council authoriz~ the City Manager to enter into agreement with Roanoke County and the Virginia Department of Transportation in regard to this drainage situation. 1. City storm sewer capacity would be moot. 2. Cost to the City would still be nothing. Addressin8 Strategic Issues. Would be contrary to one City Council's Strategic Issues - "Regional Approaches," in that the City would not be assisting Roanoke County in the solution of a neighborhood problem. VDOT would continue to face increased maintenanc~ costs associated with these road segments being periodically flooded. Mrs. Bowles and Members, Water Resources Committee Page 3 V. Recommendation: Committee recommend that City Council approve Alternative "A~" and authorize the City Manager to enter into agreement, in a form approved by the City Attorney, between the City, Roanoke County, and the Virginia Department of Transportation for storm drainage improvements in the vicinity of Williamson Road and Nelms Lane, N. W. WRH:WFC:pr pc: Elmer C. Hodge, Roanoke County Administrator Fred A. Altizer, Resident Engineer, VDOT, Salem, Virginia Wilburn C. Dibling, Jr., City Attorney Joel M. Schlanger, Director of Finance Kit B. Kiser, Director of Utilities & Operations William F. Clark, Director of Public Works Charles M. Huffine, City Engineer A B~aut~/ulBegz.ning ENG[NEErlNG DEPARTMENT March 8, 1989 PHILLiP T HENRY, PE Mr. William f. Clark Public Works Director City of Roanoke Room 354 Municipal Building 215 Church Avenue Roanoke, Virginia 24011 Re: Storm Drainage Improvements - Nelms Lane Dear Mr. Clark: Enclosed for your review and consideration is the proposed agreement for the completion of the referenced project between Roanoke City, Roanoke County, and the Virginia Department of Transportation. This agreement has been revised from the 1986 draft agreement to provide for the funding mechanism by Roanoke County and for Roanoke County to administer the project. Please let me know of any questions or concerns you may have. We hope to finalized the agreement and have it executed within the next four to six weeks. Yours truly, Phillip T. Henry, P.E. Director of Engineering PTh/lh pc: Bob L. Johnson, Hollins District Supervisor Elmer C. Hodge, County Administrator John R. Hubbard, Assistant County Administrator of Community Services and Development P.O. BOX 29800 o ROANOKE. VIRGINIA 24018-0798 · (703) 772-2080 City of Roanoke/County of Roanoke Virginia Department of Transportation Route 840, Nelms Lane Project 80-0840-5607-008 This agreement made this __ day of , 1989, by and between the ROANOKE CITY COUNCIL, hereinafter referred to as the "City," party of the first part; the ROANOKE COUNTY BOARD OF SUPERVISORS, hereinafter referred to as the "County," party of the second part; and the VIRGINIA DEPARTMENT OF TRANSPORTATION, hereinafter referred to as the "Department," party of the WI TNE S SETH THAT WHEREAS, the City, the County, and the Department have recognized an undesirable situation existing in the vicinity of the intersection of Nelms Lane and Malvern Drive in Roanoke County; and WHEREAS, the City, the County, and the Department desire to participate in the improvement of this undesirable drainage situation and to establish Iresponsibility for the cost of said improvement, it becomes necessary to state the premises and mutual covenants and agreements to carry out this desire and the parties hereto agree as follows: A. The City will: 1. Permit connection to their storm sewer system at intersection of Hildebrand Road and Williamson Road as shown on the approved plan for Project 80-0840-5607-008; 2. Provide proper maintenance of storm sewer and outfall from con- necting point in A.1. above at no cost to the County or the De- partment; 3. Approve plans prepared for Project 80-0840-5607-008 which are hereafter a part of this agreement; and third part. Be 4. Reserve the right to approve any further extensions of this drainage system into the County. The County will: 1. Provide the survey and complete plans for Project 80-0840-5607- 008; 2. Acquire the right-of-way and easements as indicated on the approved plans in accordance with all applicable state and local laws, regulations, and standards so as to qualify the expense of said acquisition as a portion of the County's eligible participa- tion costs; 3. Provide for complete construction of Project 80-0840-5607-008 including obtaining approval of construction documents by the City and Department. 4. Pay one-half of total project expenses incurred in carrying out the provisions of this agreement. This obligation shall not exceed $60,935.00 and is subject to the Board of Supervisors appropriating funds in FY 1989-90 budget year. (The total pro- ject expense shall include all costs associated with the survey and plan preparation, with the acquisition of the necessary right-of-way or easements, relocation of utilities, preparation of contract documents, advertising and awarding the contract, administration of the contract, payment to the contractor, and any and all costs incurred by the County in carrying out the provisions of this agreement and the approved plans for Project 80-0840-5607-008.) 5. Use good offices as provided in statute and law to require all future development considered a part of this outfall to honor existing drainage divides. C. The Department will: 1. Pay to the County one-half of the total project expense incurred by the County in carrying out the provisions of this agreement within sixty (60) days of receiving a properly-documented bill. Funding of the Department's share of the total expenses shall come from the Secondary Road Improvement Fund allocated to Roa- noke County's secondary road system and shall not exceed $60,935.00. 2. Approve plans prepared by the County for Project 80-0804-5607- 008 which are made a part of this agreement. Approved as to Form and Substance: tFiscal Division Legal Division <VDH&T) Date: County of Roanoke Elmer C. Hodge County Administrator Mary H. Allen Deputy Clerk City of Roanoke W. Robert Herbert City Manager Mary F. Parker Clerk 3 State of Virginia, County of Roanoke, to-wit: The foregoing instrument was acknowledged before me this__day of , 1989, by Elmer C. Hodge, County Administrator of Roanoke County, Virginia, and Mary H. Allen, Deputy Clerk. commission expires: Notary Public State of Virginia, City of Roanoke, to-wit: The foregoing instrument was acknowledged before me this__day of , 1989, by W. Robert Herbert, City Manager of the City of Roa- noke, and Mary F. Parker, City Clerk. My commission expires: Notary Public State of Virginia, City/County of Roanoke, to-wit: The foregoing instrument was acknowledged before me this__day of , 1989, by on behalf of the Fiscal Division of the Virginia Department of Transportation. My commission expires: Notary Public State of Virginia, City/County of Roanoke, to-wit: The foregoing instrument was acknowledged before me this__day of , 1989, by on behalf of the Legal Division of the Virginia Department of Transportation. My commission expires: Notary Public D OA H~~ DS