Document Missoula_doc_5c74bd94f0

-CFDA NO. 14.218 Exhibit A LOAN AGREEMENT This Loan Agreement is made and entered into this_____ day of , 20__, by and between Home ReSource, Inc., hereinafter referred to as "Borrower" and the City of Missoula, hereinafter referred to as the "City." RECITALS WHEREAS the City has been awarded entitlement funds under the U.S. Department of Housing and Urban Development (HUD) Community Development Block Grant (CDBG) Program; and WHEREAS one of the purposes of the CDBG Program is to enhance job skills for low- to moderate-income residents of the City; and WHEREAS the Borrower wishes to borrow CDBG funds from the City to remodel the interior of the Home ReSource building at 1515 Wyoming Street to create a community woodshop, a metal-working shop, a showroom, and office space; NOW, THEREFORE, in consideration of the mutual covenants and conditions herein, the parties agree as follows: 1. AMOUNT OF LOAN The City agrees under the terms and conditions of this Agreement, to make a loan for building rehabilitation and rennovation to the Borrower in the principal amount of Seventy Nine Thousand Seven Hundred and Sixty and no/100 Dollars ($79,760). This loan is evidenced by a promissory note executed by the Borrower. A copy of this note is attached hereto as Exhibit B and by this reference is made a part hereof. 2. INTEREST RATE AND REPAYMENT OF LOAN Repayment of the 15-year loan as well as forgiveness for any portion will be based on continued use of the facility to benefit low- and moderate-income City residents. Interest on the loan shall accrue at the rate of 5% per annum. Annual payments of principal and interest shall be made according to the amortization table attached to this agreement as Exhibit C with the following exception: For each 12-month period during which the Borrower offers job-skill training (described in Exhibit D) to at least 50 low-to-moderate income clients through the Home ReSource Community Workshop, the annual payment of principal and interest shall be waived by the City. There shall be no penalty for pre-payment of the loan. ---PAGE BREAK--- CFDA NO. 14.218 Exhibit A 3. REQUESTS FOR FUNDS The Borrower will submit to the City a written request for funds for the purposes of the loan specified herein. With each of these requests the Borrower will provide evidence sufficient for the City to determine the propriety of the proposed use of the funds requested. Budget adjustments must be approved in advance by the City. For adjustments between line items of the CDBG portion of Exhibit A, in an amount not to exceed $1,000, City approval of the Request for Payment form will constitute approval of the budget adjustment. The Grantee must describe the rationale for a budget adjustment in the Project Progress Report and the adjustments noted in the Request for Payment and Status of Funds Report submitted with draws against the grant funding reserve. Budget adjustments in excess of $1,000 are subject to written City approval. 4. CONDITIONS OF LOAN a. The City's obligation to make the loan provided for hereby is contingent on the City's receipt of CDBG funds for this purpose. b. During the entire term of indebtedness the Borrower will deliver to the City annual balance sheets, profit and loss statements, and other financial records as the City may reasonably request from time to time. The Borrower will also submit annual financial statements with full disclosure notes which must at a minimum be reviewed by a certified public accountant. In this regard, at any time a certified public accountant audits any of these statements the Borrower will furnish the City with a copy of all summary sheets and written opinions and reports of the certified public accountant. Further, the Borrower will make its records relating to this Agreement available for inspection during normal business hours to the City. c. The Borrower will submit status reports on project performance at the request of, and in the format prescribed by, the City. d. Upon receipt of reasonable advance notice the Borrower will permit representatives of the City to inspect the Borrower's facilities and records which are the subject of this loan. e. This Agreement is non-assignable except upon the written consent of the City. A request for consent to assignment must include a statement justifying the request and the certified financial statement of the proposed assignee. This statement must be current to within 90 days of the request. The City reserves the right to deny requests for assignment and to modify rates and terms of the loan Agreement and its exhibits as conditions of an assignment. ---PAGE BREAK--- CFDA NO. 14.218 Exhibit A f. It is expressly understood that the proceeds of this loan are designated solely for the purpose of building rennovation. g. The Borrower waives any and all claims and recourse against the City, including the right of contribution for loss and damage to persons or property arising from, growing out of, or in any way connected with or incident to this Agreement. Further, the Borrower will indemnify, hold harmless, and defend the City against any and all claims, demands, damages, costs, expenses or liability arising out of the performance of the Borrower. 5. SECURITY a. The Borrower will also provide the City with security interest as referenced in Exhibit E. b. Should the Borrower default in repayment of the loan, the City may resort to the property described in subparagraphs a. above, and engage in any remedies provided by the laws of Montana, including foreclosure, always holding the Borrower responsible for any deficiency after sale of the property securing the loan. 6. ACCEPTANCE OF CDBG PROGRAM REQUIREMENTS The Borrower will comply with all applicable parts of Title I of the Housing and Community Development Act of 1974, as amended; the applicable Department of Housing and Urban Development (HUD) regulations in 24 CFR Part 570, as now in effect or as they may be amended during the term of this contract; all requirements established by the City; applicable State and federal laws, regulations, administrative directives and procedures; and local ordinances and resolutions. The Borrower agrees that all contracts entered into by it for the completion of the activities described in the Recitals of this Agreement will contain special provisions requiring contractors to comply with all applicable state and federal requirements. The Borrower expressly agrees to repay to the City any funds advanced to the Borrower under this Agreement which the Borrower, its subcontractors or subrecipient entities, or any public or private agent or agency to which it delegates authority to carry out portions of this Agreement, expends in violation of the terms of this Agreement or the federal statutes and regulations governing the CDBG Program. ---PAGE BREAK--- CFDA NO. 14.218 Exhibit A 7. EVENTS OF DEFAULT If any of the following events occur, the City may, in its sole discretion, declare such event a default under this Agreement: a. Any representation or warranty made by the Borrower in this Agreement or in any request or certificate or other information furnished to the City hereunder proves to have been incorrect in any material respect; b. The Borrower fails in any material respect to carry out its obligations under its proposal to the City for the loan provided hereunder. c. The Borrower defaults in the payment of any indebtedness for any money borrowed, for which the Borrower is liable as principal obligor or becomes liable as guarantor; d. The Borrower applies for or consents to the appointment of a receiver, trustee or liquidator, admits in writing to its inability to pay its debts as they become due, makes a general assignment for the benefit of creditors, or invokes any relief under any chapter of the United States Bankruptcy Code; e. The Borrower fails to provide adequate collateral for the subject loan in accordance with Section 5, above; f. The Borrower fails to execute any documents necessary to make the City secure in its financial position as stated in this Agreement; g. The Borrower violates any term, assurance, or conditions of this Agreement. In the event the Borrower fails to make timely payments under this Agreement or perform any of the covenants on its part or any event of default occurs as stated above, the City may declare the Borrower to be in default and thereafter give the Borrower written notice setting forth the action or inaction which constitutes the default and giving the Borrower 30 days in which to correct the default. If the Borrower fails to correct the default within 30 days of receipt of this notice, the City may notify the Borrower in writing that the full balance due upon this Agreement is then due and payable in full within 60 days. It is agreed by the parties hereto that the provisions of this Agreement provide for reasonable and sufficient notice to be given to the Borrower in case of the Borrower's failure to perform any of its covenants and that this notice is sufficient for the Borrower to rectify its actions or inactions of default. Any waiver by the City of any default by the Borrower does not constitute a waiver of a continuing breach or a waiver of a subsequent breach. Any agreement ---PAGE BREAK--- CFDA NO. 14.218 Exhibit A contrary to this Agreement is not binding upon either party hereto unless it is in writing and signed by both parties. 8. NON-DISCRIMINATION a. Civil Rights Act of 1964. The Borrower will abide by the provisions of Title VI of the Civil Rights Act of 1964 which states that no person may, on the grounds of race, color, or national origin, be excluded from participation in, be denied the benefits of, or be subjected to discrimination under any program or activity receiving federal financial assistance. b. Section 109 of the Housing and Community Development Act of 1974. In the performance of this contract the Borrower will obey this provision which states that; "No person in the United States may on the grounds of race, color, national origin, or sex be excluded from participation in, be denied the benefits of, or be subjected to discrimination under any program or activity funded in whole or in part with the funds made available under this title. Any prohibition against discrimination on the basis of age under the Age Discrimination Act of 1974 or with respect to an otherwise qualified handicapped individual as provided in Section 504 of the Rehabilitation Act of 1973 will also apply to any such program or activity." 9. SECTION 3 The borrower will ensure that to the greatest extent feasible, opportunities for training and employment arising in connection with this CDBG-assisted project will be extended to lower income project residents. Further, the borrower will, to the greatest extent feasible, utilize business concerns located in or substantially owned by residents of the project area, in the award of contracts and purchase of services and supplies. 10. ADDITIONAL ASSURANCES The Borrower will remain fully obligated under the provisions of this Agreement notwithstanding its designation of any third party or parties with written approval of the City for the undertaking of all or any part of the program with respect to which assistance is being provided under this Agreement. The Borrower will comply with all applicable laws, rules and regulations of the City, the State of Montana, and the United States Government and with all lawful requirements of the City so as to insure that this Agreement is carried out in accordance with the obligations and responsibility of the City to the United States Department of Housing and Urban Development. ---PAGE BREAK--- CFDA NO. 14.218 Exhibit A 11. LITIGATION The Borrower states that to the best of its knowledge and belief there are no suits or proceedings pending or threatened against or affecting it which, if adversely determined, would have a material adverse effect on its financial condition. In addition, to the knowledge of the Borrower, there are no proceedings by or before any governmental commission, board, bureau or other administrative agency pending or threatened against the Borrower. 12. INSURANCE The Borrower agrees that upon receipt of CDBG funds from the City it will keep the improvements upon said premises insured against loss by fire in the sum of at least 80 percent of the cost of replacing the improvements payable to the City for the monetary amount of Borrower's obligation to the City. However, the Borrower may, upon written approval of the City, in the event of loss by fire, apply insurance proceeds received by the City towards the payment of the loan or use the proceeds to rebuild the improvements destroyed by fire. If the Borrower chooses this latter option, the City will hold the insurance proceeds and pay them to materialmen, contractors, and laborers for services rendered and materials furnished and delivered in the rebuilding of the improvements. It is understood that it is the Borrower's duty to see that no liens are filed upon the premises by reason of any rebuilding. The Borrower will place copies of the insurance policy or policies with the City within 30 days of the date of completion of the manufacturing facilities Borrower intends to erect. During the term of this loan Agreement, when the Borrower renews the insurance policy by payment of an additional year's premium, the Borrower will provide proof of payment of the premium to the City so as to keep the City advised at all times that the property is insured. Failure to so notify the City is an event of default of this loan Agreement for purposes of the default provisions of Section 6 above. 13. DISPUTES In the event that either party incurs legal expenses to enforce the terms and conditions of this Agreement, the prevailing party is entitled to recover reasonable attorney's fees and other costs and expenses, whether the same are incurred with or without suit. 14. AVOIDANCE OF CONFLICT OF INTEREST The Borrower covenants that no officer, member, agent, or employee of the City who participates in the administration of this Agreement in other than a purely ministerial capacity will have any personal interest, real or apparent, in the proceeds of the loan provided hereby. For purposes of this covenant an impermissible conflict of interest exists if the officer, member, agent or employee; any member of his or her immediate family; his or her partner; or an organization which employs, or is about to employ, any of the foregoing has a financial or other interest in the proceeds hereof during his or her tenure or for one year thereafter. ---PAGE BREAK--- CFDA NO. 14.218 Exhibit A The Borrower shall incorporate, or cause to be incorporated, in all contracts or subcontracts a provision prohibiting such interest pursuant to the purposes of this section. 15. OPEN MEETINGS All meetings of the Grantee’s Board of Directors will be open to the public as per the applicable Montana Code Annotated provisions in 2-3-203, MCA. 16. CONSTRUCTION AND VENUE This Agreement will be construed under and governed by the laws of the State of Montana. In the event of litigation concerning it, venue is in the District Court of the Fourth Judicial District in and for the County of Missoula, State of Montana. LENDER: BORROWER: City of Missoula: John Engen, Mayor Date: Home ReSource, Inc.: Heather McMilin Chair, Board of Directors Date: ATTEST: Martha L. Rehbein, CMC City Clerk ---PAGE BREAK--- 15 CFDA NO. 14.218 Exhibit A Project Budget Expenditures and Revenue Sources Source: CDBG Source: HRI Private donations Source: DEQ grant Source: HRI program revenue Total Project Budget PROJECT COSTS Salaries & Wages 36,200 36,200 Employee Benefits 7,800 7,800 Contracted Services 2,000 2,000 Insurance, Legal & Financial Services 2,000 2,000 Direct Client Assistance 10,680 10,680 Travel/Training Office Expenses 17,775 17,775 Construction Costs 79,760 32,460 3,000 115,220 SUBTOTAL: Project Costs 79,760 32,460 79,455 191,675 OTHER COSTS (include other costs needed to implement this service or project) Other Costs (Building Acquisition): SUBTOTAL: Other Costs GRAND TOTAL GRAND TOTAL PROJECT COSTS 79,760 32,460 79,455 191,675 ---PAGE BREAK--- 16 CFDA NO. 14.218 Exhibit A CONSTRUCTION BUDGET- Home ReSource SOURCE SOURCE SOURCE SOURCE SOURCE SOURCE TOTAL PROJECT CDBG HRI donations DEQ Grant HRI program revenue BUDGET ADMINISTRATION TOTAL ADMINISTRATION LAND/ BLDG./ACQUISITION Land Existing Structure Demolition TOTAL LAND/BLDG./ACQ. Other TOTAL SITE WORK CONSTRUCTION AND REHAB 78,260 32,460 3,000 113,720 Rehab Other TOTAL CONST. & REHAB 78,260 32,460 3,000 113,720 PROFESSIONAL WORK & FEES Other (Const. insurance & inspection fees) 1,500 1,500 TOTAL PROF. WORK & FEES 1,500 1,500 GRAND TOTAL CONSTRUCTION COSTS 79,670 32,460 3,000 $115,220 ---PAGE BREAK--- 17 CFDA NO. 14.218 Exhibit A Home Resource Program Revenue: We have attached the projected year 1 operating budget showing revenue from memberships, time rental, workshops, classes, and ReVAMP product sales. Total revenues are projected to be $101,310, allowing for net reserves of $24,855 after the covering ReVAMP direct costs. Project Costs: Salaries and wages, EE Benefits: Includes salary for ReVAMP Shop Director and 5% of Home Resource Director salaries and manager staff wages (that portion expected to be applied to ReVAMP.) Contracted Services: Bookkeeping and accounting services required Insurance, Legal & Financial Services: An allowance for increases to HRI’s business insurance necessary to add coverage for woodworking, metalworking and classes. Direct Client Assistance Includes: Instruction costs: $2000 Materials costs: $1480 Equip. Maintenance: $4800 Shop supplies: $2400 Office Expenses include: Office Supplies $ 400 Printing $1000 Marketing $1000 Rent $9375 (this is rent for the ReVAMP shop square footage, not the office.) Utilities $6000 (again, for electrical and heating of ReVAMP shop space) Detailed budget Narrative: Revenue Sources: We included only that portion of these sources that will be allocated to project costs. Fundraising: This is the portion of Home Resource’s Relocation fundraising campaign we anticipate allocated specifically to ReVAMP program construction costs. It includes 25% of office space construction costs, and all ReVAMP showroom construction costs. We anticipate meeting many of the materials needs with Home Resource materials, and using volunteer labor to complete much of the work. (As these items will not be CDBG funded, we understand that federal requirements will not apply.) Home Resource has already raised $68,000 from the public and aims to raise a total of $100,000 that will be used for multiple aspects of tenant improvements. MFCU Loan or DEQ grant: If HRI is successful in its application for a $25,000 grant from the DEQ, those funds will be applied to equipment costs. If not, we will use funds from an anticipated $50,000 loan from MFCU. Though not yet finalized, we have received preliminary verbal approval from MFCU. ---PAGE BREAK--- 18 Exhibit A Construction Costs: (We should not that this estimate is far higher than that in our letter of intent due to the requirements for Davis Bacon Wages and federal procurement standards.) Scope of work is described in the attached document, “ReVAMP Project Scope of Work” CDBG Costs: Inspection Fees $ 500 Construction Liability Insurance $ 1,000 Division 5: Metals: $ 3,800 Division 13 Special Construction Dust collection infrastructure $ 9,500 Division 15 Mechanical Infrastructure: $6,000 Division 16 Electrical Construction: $20,000 Divisions 6, 7, 8, & 9 Shop Construction: $28,990 Plumbing (concrete cutting, trenching, etc.): $9,970 TOTAL: $79,760 Home Resource Costs: Professional Fees Architectural $ 1,000 Mechanical Engineer $ 2,000 Electrical Engineer $ 3,000 All showroom construction costs $ 4,000 25% of general office construction $16,660 25% of mechanical & electrical construction $5,800 TOTAL: $32,460 ---PAGE BREAK--- 19 CFDA NO. 14.218 Exhibit A Project Schedule Hire Shop Director for design/build June 30th Final architectural work completed July 2nd Permit Revision approved July 7th Pre-construction Conference Week of July 5-9 Construction Divisions 6-9 (Self-perform) July 12 - 31 Electrical, mechanical, plumbing documents completed July 14 Permit revision (engineering docs) approved July 19 Subcontractors selected July 31 Subcontracted work August 2nd – 31st Finish work, cabinetry, tool installation, , etc. August 2nd – Sept. 17th ReVAMP shop open to members September 18th Workshops offered to public Sept. 25 – December 15 First skills training classes offered to public Jan – March 2011 ---PAGE BREAK--- 20 CFDA NO. 14.218 Exhibit B Missoula, Montana PROMISSORY NOTE As hereinafter provided, for value received, Home ReSource, Inc., as Borrower, promises to pay to the City of Missoula, Montana, its successors or assigns, as Lender, the sum of SEVENTY NINE THOUSAND SEVEN HUNDRED SIXTY AND NO/00 DOLLARS ($79,760.00). Events of Default 1. If the Borrower shall fail to make any loan repayment when due and such failure shall continue for five business days after written notice thereof given to Borrower by the City; or, 2. Any one or more of the events listed in the Loan Agreement as Events of Default will be considered an event of default under this Note. Lender's Remedies Whenever the City has cause to send written notice as specified under Events of Default, the City shall assess the Borrower a charge of two percent of the scheduled payment (minimum Forty Dollars [$40.00]) per month, for each delinquent loan payment. Whenever any Event of Default shall have happened and be subsisting, the City may declare all Loan Repayments payable pursuant to this Promissory Note to be immediately due and payable by the Borrower. In addition the City, with or without declaring all such Loan Repayments immediately due and payable, may take whatever action to collect the Loan Repayment then due, or to enforce the performance and observation of any obligation of the Borrower under this Agreement. Costs of such enforcement, including attorneys' fees, shall be paid by the party found to be breaching this Promissory Note. ---PAGE BREAK--- 21 CFDA NO. 14.218 Exhibit B Waiver The signers hereof, whether as principal or endorser, hereby waive all benefit or advantage to which he may be entitled to by virtue of any homestead or other exemption law now or hereafter in force in the State of Montana. Dated the day of , . BORROWER: HOME RESOURCE, INC. 1515 Wyoming Street Missoula, Montana 59801 BY: Heather McMilin Chair, Home ReSource Board of Directors (SEAL) State of ) S.S. County ) On this day of , personally appeared known to me to be the person whose name is subscribed to this instrument, and acknowledged that he executed the same. Notary Public Residing My commission ---PAGE BREAK--- 22 CFDA NO. 14.218 Exhibit C Home ReSource Loan Amortization Schedule Loan Information Loan Amount $79,760.00 Annual Interest Rate 5.00% Compound Period Annual Term of Loan in Years 15 First Payment Date 4/1/2011 Payment Frequency Annual Payment Type End of Period Annual Payment $7,569.00 Amortization Schedule Payment Number Due Date Payment Amount Balance 1 4/1/2011 $7,659.00 $76,096.00 2 4/1/2012 $7,659.00 $72,244.00 3 4/1/2013 $7,659.00 $68,196.00 4 4/1/2014 $7,659.00 $63,940.00 5 4/1/2015 $7,659.00 $59,467.00 6 4/1/2016 $7,659.00 $54,764.00 7 4/1/2017 $7,659.00 $49,822.00 8 4/1/2018 $7,659.00 $44,626.00 9 4/1/2019 $7,659.00 $39,164.00 10 4/1/2020 $7,659.00 $33,423.00 11 4/1/2021 $7,659.00 $27,388.00 12 4/1/2022 $7,659.00 $21,045.00 13 4/1/2023 $7,659.00 $14,377.00 14 4/1/2024 $7,659.00 $7,368.00 15 4/1/2025 $7,659.00 $0.00 ---PAGE BREAK--- 23 CFDA NO. 14.218 Exhibit D Description of Job Skills Training to be conducted at Home ReSource The ReVAMP shop will: 1. Provide a shared workspace where homeowners, small contractors, entrepreneurs and micro-enterprise craftspeople can learn new skills, develop new products and incubate “green” business ideas without having to invest in an entire woodworking shop of their own; 2. Offer workshops and classes for the benefit of LMI individuals and families (described in more detail below;) and 3. Foster the development of successful ReVAMP products and market them well, in order to establish a successful retail business that supports job training programs long term. 4. Serve a minimum of 50 low-to-moderate-income clients per year. 5. Certify participants as low-to-moderate-income, based on the collection of income verification forms. Items 1 and 3 will be managed by the ReVAMP Shop Director, who will be paid out of revenues generated from these activities. Item 2 will be executed through a partnership with The Lifelong Learning Center: This Center would partner with HR to: 1. Develop workshop and class descriptions and curricula that meet the demands they already know to exist. 2. Advertise classes and workshops through over 30,000 catalogues 3. Manage registration and administration of income verification for sliding scale tuition and payments from supporting organizations such the Office of Public Assistance, the Missoula Housing Authority, Missoula Youth Homes and others. 4. Pay teachers ($25/hour of class time) from tuition collected Workshop Topics: Based on HRI customer demand and the experience of the Lifelong Learning Center, we anticipate offering ten workshops in the first year on such topics as: 1. Introduction to woodworking: Learn safe tool operation and maintenance through the construction of a simple item such as a tool box or coat rack. 2. Introduction to Welding 3. Build a coldframe or solar food dryer with used windows and screens 4. Build a door frame and learn to hang your vintage panel door 5. Working with copper pipe: learn to “sweat” pipe and repair your plumbing 6. Working with a lathe: build your own lamp Class Topics: We anticipate spending most of the first year building and setting up the shop and membership programs, therefore we anticipate only offering one Introduction to Woodworking and one Introduction to Metalworking class in the first grant period. Each would go into more detail than the one day workshop. Topics covered in the woodworking class would include identifying species of wood, working with hardwoods versus softwoods, challenges unique to reclaimed lumber, and design concepts necessary to build a more complex item such as a table. The metalwork class would cover basic welding techniques to produce a bicycle trailer from reclaimed electrical conduit pipe. ---PAGE BREAK--- 24 CFDA NO. 14.218 Exhibit E Personal Guarantee HOME RESOURCE INVENTORY ASSESSMENT PROCEDURE May 10, 2010 In order to value the inventory on hand in the Home Resource warehouse the finance committee evaluated several options and determined that to reach a reasonable approximation the following procedure would be followed. Matt Hisel and Abe Coley examined the floor plan and all departments to break out the area into meaningful sections. The sections were then assessed separately by each person participating in the valuation. In this assessment, we had a total of four inventory valuators; Matt Hisel, Abe Coley, Josh Decker and Nicole Marshall. Each individual separately examined each of the sections and used a reasonable sales value for the merchandise in that section. When it was feasible to do so, the items were counted in a defined area and then extrapolated to other similar areas. For example a section may have 9 shelves of cabinet doors. One shelf of cabinet doors would be counted and the count would then be applied to the other 8 similar shelves. Exact quantities were not recorded due to the volume of inventory items and the time available for the assessment. The sections were measured conservatively and at the second hand sales value. The four individual assessments were blended to determine the average estimated value. Using this process we believe the wide range of potential sales values were smoothed and a reasonable value for inventory was established. Furthermore, the sales figures also support our estimated inventory value. An average day of sales in the new location has been around $1,500. Using this figure, the store can be expected to sell inventory of at least $45,000 each month. Based on our estimations and the quantities on hand, we believe the warehouse reasonably contains at least two to three months of sales in inventory. The inventory at Home Resource only continues to grow and become more diverse. Donations at the new location continue with as many if not more items. Deconstruction as a department also contributes significant high quality items that are highly sellable. We are using these facts in addition to our counts to determine that we have valued the total inventory conservatively. Based on our assessments the Board of Directors and the Treasurer (Nicole Marshall) believe the conservative value of the Home Resource inventory to be between $95,000 and $105,000 not including large items such as Liberty Lanes Building and Florence Fire Building as we are in the process of selling these items and would prefer not to collateralize them. ---PAGE BREAK--- 25 Please see the attached document for a complete listing of the departments and sections. This report also contains the value from each of our four valuators. ---PAGE BREAK--- 26 # Home Resource # Department Sales Summary Date: 3/30/2010 12:00:00 AM to 4/28/2010 11:59:59 PM Dept Name MH eval NM Eval AC Eval JD Eval Average Lumber Section 1: Row of lumber racks furthest east 7000 10000 7200 8500.00 Section 2: Next row of lumber racks to west 1200 1500 1350.00 Section 3: All lumber racks near west fence 600 1000 1000 866.67 Section 4: All lumber bunks in yard west of parking lot 8000 15000 29000 11000 19666.67 TRIM - (inside) 1500 1560 12000 5020.00 Doors 8120 7500 10500 500 7520.00 Cabinets 1300 500.00 Section 1: Shelves in SE corner or NE warehouse 2000 1600 1000 1800 1800.00 Section 2: All cabs in SW warehouse and elsewhere 3000 2910 1500 600 2170.00 Plumbing 1300 600.00 Section 1: SINKS 2100 3500 2000 400 2316.67 Section 2: TOILETS 500 600 400 720 656.67 Section 3: BATHTUBS (outside) 1000 3500 1300 2500 2600.00 Section 4: Plumbing Hardware Cabinets (see map) 3000 1650 800 5500 3150.00 Windows 3000 3800 2500 1500 3100.00 Lighting 800 800.00 Section 1: Globes and shades 540 2790 5000 2776.67 Section 2: Shelved lights 2000 2600 2500 1500 2533.33 Section 3: Hanging chandeliers 460 3500 10600 4853.33 ReVAMP 4000 3900 2000 6000 4633.33 Brick/Block 2000 3500 5000 4500 4666.67 ---PAGE BREAK--- 27 Hardware 6000 2900 1000 3600 3500.00 Tile 2000 3800 1000 2500 2766.67 Tools 1000 3000 [PHONE REDACTED].67 Sheetgoods 1000 1200 375 2250 1441.67 Paint 2000 3100 1500 2100 2566.67 Flooring 1000 1000 800 2250 1516.67 HVAC 2000 5630 5000 3500 5043.33 Electrical 4000 11800 1700 900 5466.67 Roofing 3000 750 1875.00 Fencing 1000 500 750.00 Garden 500 3800 [PHONE REDACTED].67 Insulation 1000 550 750 500 766.67 Glass 2000 2525 250 2000 1925.00 Furniture 3000 12000 7500.00 Metal 1000 2000 200 1066.67 Special Item: St. Pat's shelving system 5000 3000 4000.00 Miscellaneous stuff in yard (bowling alleys?) 5000 5000.00 averages subtotal 128398.33 individual totals 90520 97215 84825 114170 113823.33 Individual Totals averaged $113,823.33 Line Item averages totaled $128,398.33 ---PAGE BREAK--- 28 ---PAGE BREAK--- 29 ---PAGE BREAK--- 30 ---PAGE BREAK--- 31 CFDA NO. 14.218 Exhibit F CDBG SUPPLEMENTAL GENERAL CONDITIONS AND FEDERAL LABOR STANDARDS PROVISIONS CDBG SUPPLEMENTAL GENERAL CONDITIONS The following Supplemental General Conditions are hereby made a part of this contract and shall supplement and/or supersede any articles of these specifications in conflict therewith. Any subsequent and/or addenda issued after these specifications have been prepared shall supplement and/or supersede any articles of these specifications. 1. Montana Contractor Registration Requirements 2. Contractor’s License Fee 3. Preconstruction Conference 4. Reports and Information 5. Access to Records 6. Contract Pricing 7. Federal Labor Standards Provisions (HUD-4010 Form) 8. Schedule of Minimum Hourly Wage Rates (Davis-Bacon Wage Determination) 9. Equal Opportunity Provisions a. Equal Employment Opportunity (Executive Order 11246) b. Title VI of the Civil Rights Act of 1964 c. Section 109 of the Housing and Community Development Act of 1974 d. Section 3 of the Housing and Community Development Act of 1968 e. Minority/Women Business Enterprise f. Nondiscrimination Provision in all Public Contracts 10. Uniform Federal Accessibility Standards (UFAS) 11. Compliance with Federal Clean Air and Water Acts 12. Contractor Eligibility 1. MONTANA CONTRACTOR REGISTRATION REQUIREMENT MCA 39-9-201 through 39-9-211 provides information about contractor registration requirements with the State of Montana. Contractors and any of the contractor’s subcontractors doing work on a project will be required to obtain registration with the Montana Department of Labor and Industry (DLI). Forms for registration are available from the Department of Labor and Industry, P. O. Box 8011, 1805 Prospect, Helena, Montana 59604-8011. Information on registration can be obtained by calling 1-[PHONE REDACTED]. ---PAGE BREAK--- 32 Contractors are not required to have registered with the DLI prior to bidding on this project, but must have registered prior to execution of the Construction Agreement. All laborers and mechanics employed by the contractor or subcontractors in performance of the construction work shall be paid wages at rates as may be required by the federal Davis Bacon prevailing wage and reporting requirements and the State of Montana. The contractor must ensure that employees and applicants for employment are not discriminated against because of their race, color, religion, sex or national origin. 2. CONTRACTOR’S LICENSE FEE Pursuant to Section 15-50-206(2)(3), MCA, the Owner is required to withhold one percent of all payments due the Contractor and is required to transmit such moneys to the Montana Department of Revenue as part of the public contractor's license fee. In like fashion, the Contractor is required to withhold one percent from payments to subcontractors. 3. PRECONSTRUCTION CONFERENCE After the contract(s) have been awarded, but before the start of construction, a conference will be held for the purpose of discussion requirements on such matters as project supervision, coordination with city or county officials, on-site inspections, progress schedules and reports, payrolls, payments to contractors, contract change orders, insurance, safety and other items pertinent to the project. The contractor shall arrange to have all supervisory personnel connected with the project on hand to meet with representatives of the engineer and owner to discuss any problems anticipated. 4. REPORTS AND INFORMATION The contractor, at such times and in such forms as the owner may require, shall furnish the owner such periodic reports as it may request pertaining to the work or services undertaken pursuant to this contract, the costs and obligations incurred or to be incurred in connection therewith, and any other matters covered by this contract. 5. ACCESS TO RECORDS The owner, the Inspector General of the United States, the U.S. Department of Housing and Urban Development, the U.S. Department of Labor, the General Accounting Office, and the City of Missoula shall be permitted by the contractor to have full access to, and right to examine any pertinent books, documents, papers and records of the contractor involving transactions related to this contract, during the period of the project and for three years from the date of final payment or until all findings have been resolved to the satisfaction of the State of Montana. 6. CONTRACT PRICING The cost plus a percentage of cost and percentage of construction cost method of contracting shall not be used. 7. FEDERAL LABOR STANDARDS PROVISIONS Attached. 8. SCHEDULE OF MINIMUM HOURLY WAGE RATES Not applicable. Project consists of residential apartments, four stories or fewer. 9. EQUAL OPPORTUNITY PROVISIONS Equal Employment Opportunity (Executive Order 11246). During the performance of this contract, the Contractor agrees as follows: The contractor will not discriminate against any employee or applicant for employment because of race, color, religion, sex or national origin. The contractor will take affirmative action to ensure that applicants are employed, and ---PAGE BREAK--- 33 that employees are treated during employment, without regard to their race, color, religion, sex or national origin. Such action shall include, but not be limited to the following: employment, upgrading, demotion, transfer, recruitment or recruitment advertising, layoff or termination, rates of pay or other forms of compensation, and selection of training, including apprenticeship. The contractor agrees to post in conspicuous places, available to employees and applicants for employment, notices to be provided by the contracting officer setting forth the provisions of this nondiscrimination clause. The contractor will, in all solicitations or advertisements for employees placed by or on behalf of the contractor, state that all qualified applicants will receive consideration for employment without regard to race, color, religion, sex or national origin. The contractor will send to each labor union or representative of workers with which it has a collective bargaining agreement or other contract or understanding, a notice to be provided by the Department's contracting officer advising the labor union or workers' representative of the contractor's commitments under Section 202 of Executive Order 11246 of September 24, 1965, and shall post copies of the notice in conspicuous places available to employees and applicants for employment. The contractor will comply with all provisions of Executive Order 11246 of September 24, 1965, and of the rules, regulations and relevant orders of the Secretary of Labor. The contractor will furnish all information and reports required by Executive Order 11246 of September 24, 1965, and by the rules, regulations, and orders of the Secretary of Labor, or pursuant thereto, and will permit access to its books, records and accounts by the Department and the Secretary of Labor for purposes of investigation to ascertain compliance with such rules, regulations and orders. In the event of the contractor's noncompliance with the non- discrimination clauses of this contract or with any of such rules, regulations or orders, this contract may be canceled, terminated or suspended in whole or in part and the contractor may be declared ineligible for further government contracts in accordance with procedures authorized in Executive Order 11246 of September 24, 1965, and such other sanctions may be imposed and remedies invoked as provided in Executive Order 11246 of September 24, 1965, or by rules, regulations, or order of the Secretary of Labor, or as otherwise provided by law. The contractor will include the provisions of paragraphs 1 through 7 in every subcontract or purchase order unless exempted by rules, regulations or orders of the Secretary of Labor issued pursuant to Section 204 of Executive Order 11246 of September 24, 1965, so that each provision will be binding upon each subcontractor or vendor. The contractor will take such action with respect to any subcontract or purchase order as the Department may direct as a means of enforcing such provisions including sanctions for noncompliance. Provided, however, that in the event the contractor becomes involved in or is threatened with, litigation with a subcontractor or vendor as a result of such direction by the Department, the contractor may request the United States to enter into such litigation to protect the interest of the United States. Title VI of the Civil Rights Act of 1964. Provides that no person shall, on the grounds of race, color, or national origin, be excluded from participation in, be denied the benefits of, or be subjected to discrimination under any program or activity receiving federal financial assistance. Section 109 of the Housing and Community Development Act of 1974. "No person in the United States shall on the ground of race, color, national origin or sex be excluded from ---PAGE BREAK--- 34 participation in, be denied the benefits of, or be subjected to discrimination under any program or activity funded in whole or in part with funds available under this title. Any prohibition against discrimination on the basis of age under the Age Discrimination Act of 1975 or with respect to an otherwise qualified handicapped individual as provided in Section 504 of the Rehabilitation Act of 1973 shall also apply to any such program or activity." Section 3 of the Housing and Community Development Act of 1968. The contractor will ensure that to the greatest extent feasible opportunities for training and employment arising in connection with this CDBG-assisted project will be extended to project area residents. Further, the contractor will, to the greatest extent feasible, utilize business concerns located in or substantially owned by residents of the project area, in the award of contracts and purchase of services and supplies. Minority Business Enterprise. Under the provisions of Executive Order 11246 contractors on federally-funded projects are required to take affirmative steps to assure that minority businesses are used when possible as sources of supplies, equipment, construction and services. Additionally, the contractor must document all affirmative steps taken to solicit minority businesses and forward this documentation along with the names of the minority subcontractors and suppliers to the owner upon request. Nondiscrimination Provision in all Public Contracts Pursuant to Section 49-3-207, MCA, the Contractor certifies that all hiring will be on the basis of merit and qualifications and there will be no discrimination on the basis of race, color, religion, creed, political ideas, sex, age, marital status, physical or mental handicap, or national origin. 10. UNIFORM FEDERAL ACCESSIBILITY STANDARDS (UFAS) All design specifications for the construction of any building shall provide access to the physically handicapped in accordance with the Uniform Federal Accessibility Standards and HUD regulations 24 CFR Part 8, "Nondiscrimination Based on Handicap in Federally Assisted Programs and Activities of HUD". 11. CERTIFICATION OF COMPLIANCE WITH FEDERAL CLEAN AIR AND WATER ACTS (Applicable to federally assisted construction contracts and related sub-contracts exceeding $100,000.) During the performance of this contract, the contractor and all subcontractors shall comply with the requirements of the Clean Air Act, as amended, 42 USC 1857 et seq., the Federal Water Pollution Control Act, as amended, 33 USC 1251 et seq., and the regulations of the Environmental Protection Agency with respect thereto, at 40 CFR 15, as amended. 12. CONTRACTOR ELIGIBILITY The Contractor certifies that the Contractor's firm and the firm's principals are not debarred, suspended, voluntarily excluded, or otherwise ineligible for participation in federally assisted contracts under Executive Order 12549, "Debarment and Suspension" (24 CFR 24.505). ---PAGE BREAK--- 35 General Decision Number: MT100033 03/12/2010 MT33 Superseded General Decision Number: MT20080033 State: Montana Construction Type: Building County: Missoula County in Montana. BUILDING CONSTRUCTION PROJECTS (Does not include residential construction consisting of single family homes and apartments up to and including 4 stories) Modification Number Publication Date 0 03/12/2010 BOIL0011-001 10/01/2008 Rates Fringes 30.08 19.10 BRMT0001-002 10/07/2009 Rates Fringes 26.06 10.23 ELEC0768-004 03/01/2008 Rates Fringes ELECTRICIAN (Including Low Voltage Wiring of Alarms, HVAC, Sound Systems, Communications, and Telephones; excluding Category 5 Cabling, TV distribution, and Card Access)...$ 27.10 10.71 IRON0014-006 07/01/2009 Rates Fringes IRONWORKER, STRUCTURAL...........$ 25.34 16.58 PLUM0459-004 05/01/2009 Rates Fringes ---PAGE BREAK--- 36 PLUMBER/PIPEFITTER (Including HVAC Piping, and Set 28.26 11.15 * SHEE0103-004 06/01/2009 Rates Fringes Sheet metal worker (HVAC Duct Work 26.24 11.24 SUMT1999-005 02/23/1999 Rates Fringes CARPENTER (Form Work 14.04 3.70 CARPENTER (Including Installation of Drywall; excluding Batt Insulation, Cabinets, and Form 13.57 3.70 CEMENT MASON/CONCRETE FINISHER (Form Work 13.60 .58 Laborer, 11.79 3.50 Power Equipment Operator 13.00 17.25 4.13 14.00 ROOFER, Including Built Up, Composition and Single Ply 12.00 TRUCK DRIVER 10 cu yd Tandem 12.00 WELDERS - Receive rate prescribed for craft performing operation to which welding is incidental. Unlisted classifications needed for work not included within the scope of the classifications listed may be added after award only as provided in the labor standards contract clauses (29CFR 5.5 In the listing above, the "SU" designation means that rates listed under the identifier do not reflect collectively ---PAGE BREAK--- 37 bargained wage and fringe benefit rates. Other designations indicate unions whose rates have been determined to be prevailing. WAGE DETERMINATION APPEALS PROCESS Has there been an initial decision in the matter? This can be: * an existing published wage determination * a survey underlying a wage determination * a Wage and Hour Division letter setting forth a position on a wage determination matter * a conformance (additional classification and rate) ruling On survey related matters, initial contact, including requests for summaries of surveys, should be with the Wage and Hour Regional Office for the area in which the survey was conducted because those Regional Offices have responsibility for the Davis-Bacon survey program. If the response from this initial contact is not satisfactory, then the process described in and should be followed. With regard to any other matter not yet ripe for the formal process described here, initial contact should be with the Branch of Construction Wage Determinations. Write to: Branch of Construction Wage Determinations Wage and Hour Division U.S. Department of Labor 200 Constitution Avenue, N.W. Washington, DC 20210 If the answer to the question in is yes, then an interested party (those affected by the action) can request review and reconsideration from the Wage and Hour Administrator (See 29 CFR Part 1.8 and 29 CFR Part Write to: Wage and Hour Administrator U.S. Department of Labor 200 Constitution Avenue, N.W. Washington, DC 20210 The request should be accompanied by a full statement of the interested party's position and by any information (wage payment data, project description, area practice material, etc.) that the requestor considers relevant to the issue. If the decision of the Administrator is not favorable, an interested party may appeal directly to the Administrative ---PAGE BREAK--- 38 Review Board (formerly the Wage Appeals Board). Write to: Administrative Review Board U.S. Department of Labor 200 Constitution Avenue, N.W. Washington, DC 20210 All decisions by the Administrative Review Board are final. END OF GENERAL DECISION ---PAGE BREAK--- 39 ---PAGE BREAK--- 40 ---PAGE BREAK--- 41 ---PAGE BREAK--- 42