HomeMy WebLinkAboutAgenda_GGAF_01.07.2015Notice of Meeting for the
General Government and Finance Advisory Board
of the City of Georgetown
January 7, 2015 at 3:30 PM
at Georgetown Public Library Friends of the Library Room, located at 402 West 8th Street,
Georgetown, TX
The City of Georgetown is committed to compliance with the Americans with Disabilities Act (ADA). If you
require assistance in participating at a public meeting due to a disability, as defined under the ADA,
reasonable assistance, adaptations, or accommodations will be provided upon request. Please contact the City
at least four (4) days prior to the scheduled meeting date, at (512) 930-3652 or City Hall at 113 East 8th Street
for additional information; TTY users route through Relay Texas at 711.
Legislative Regular Agenda
A Review minutes from the December 3, 2014 GGAF meeting - Danella Elliott, Executive Assistant
B Consideration and recommendation to implement an expansion of the City’s Infor Enterprise Asset
Management software to enable its use for vehicle fleet management at the City of Georgetown’s Fleet
Service Center - Stan Hohman, Fleet Maintenance Supervisor and Chris Bryce, Assistant Director of IT
C Purchase of replacement Cisco Network Switches from Presidio Networked Solutions for $77,052.60 -
James Davis,, IT Operations Manager and Mike Peters, Information Technology Director
D Consideration and possible action to approve a loan agreement with Steele Georgetown LIHTC, LLC. to
assist in securing Housing Tax Credits for the renovation of 55 existing affordable units at Georgetown
Square Apartments located at 206 Royal Drive.—Jennifer C. Bills, Housing Coordinator and Laurie
Brewer, Assistant City Manager
E Consideration and possible action to approve a loan agreement with HVM 2015 Georgetown, Ltd. to
assist in securing Housing Tax Credits for the renovation of 24 existing affordable units at Northwest
Apartments, located at 1623 Northwest Boulevard.—Jennifer C. Bills, Housing Coordinator and Laurie
Brewer, Assistant City Manager
F Discussion regarding the use of Direct Payment Sales Tax Permits as Economic Development Tools -
Christopher Foster, Manager of Resource Planning and Integration and Mark Thomas, Economic
Development Director
G Consideration and possible action to approve the board bylaws in accordance with the revised Code of
Ordinances – Micki Rundell, CFO and Danella Elliott, Staff Liaison
CERTIFICATE OF POSTING
I, Jessica Brettle, City Secretary for the City of Georgetown, Texas, do hereby certify that this Notice of
Meeting was posted at City Hall, 113 E. 8th Street, a place readily accessible to the general public at all
times, on the ______ day of __________________, 2014, at __________, and remained so posted for at least
72 continuous hours preceding the scheduled time of said meeting.
____________________________________
Jessica Brettle, City Secretary
City of Georgetown, Texas
Government and Finance Advisory Board
January 7, 2015
SUBJECT:
Review minutes from the December 3, 2014 GGAF meeting - Danella Elliott, Executive Assistant
ITEM SUMMARY:
FINANCIAL IMPACT:
N//A
SUBMITTED BY:
Danella Elliott, Executive Assistant
ATTACHMENTS:
Description Type
12.1.14 Draft Minutes Cover Memo
Minutes of the Meeting of the
GENERAL GOVERNMENT AND FINANCE ADVISORY BOARD (GGAF)
City of Georgetown, Texas
December 3, 2014
The General Government and Finance Advisory Board met at 3:30 p.m. on Wednesday, December 3, 2014 in the
Georgetown Public Library Friends of the Library Room, located at 402 West 8thth Street, Georgetown, Texas.
MEMBERS PRESENT: Keith Brainard, Chair, Tommy Gonzalez, Joe Pondrom, Ralph Mason
MEMBERS ABSENT: Jerry Hammerlun
STAFF/OTHERS
PRESENT: Micki Rundell, Laurie Brewer, Susan Morgan, Bridget Chapman, Mike Peters, Stan
Hohman, Wayne Nero, John Sullivan, Clay Shell, Tadd Phillips, Trish Long, Eric Nuner,
Kimberly Garett, Susan Anderson (Valley View Investments)
A copy of these minutes, containing detailed information on the items listed below will be available in the Finance
and Administration Office, located at 113 East 8th Street, Georgetown, TX and can be found online at
http://agendas.georgetown.org/
Executive Session
In compliance with the Open Meetings Act, Chapter 551, Government Code, Vernon’s Texas Codes, Annotated, the
items listed below will be discussed in closed session and are subject to action in the regular session that follows.
Regular Session – Called to order at 3:30 p.m.
The GGAF Board may, at any time, recess the Regular Session to convene an Executive Session at the request of the
Chair of the GGAF Committee for any purpose authorized by the Open Meetings Act, Texas Government Code
Chapter 551.)
Public Wishing to Address Council
On a subject that is posted on this agenda: Please fill out a speaker registration form. Clearly print your name and
the letter of the item on which you wish to speak and present it to the Chair or Board Liaison, preferably prior to the
start of the meeting. You will be called forward to speak when the Board considers that item.
On a subject not posted on the agenda: Persons may add an item to a future Board agenda by contacting the Liaison
prior to the creation of the agenda for the following meeting, with the subject matter of the topic they would like to
address and their name. The Board Liaison can be reached at 512-930-3676 or by email at
danella.elliott@georgetown.org
Statutory Consent Agenda
The Statutory Consent Agenda includes non-controversial and routine items that Board may act on with one single
vote. A board member may pull any item from the Consent Agenda in order that the Board discuss and act upon it
individually as part of the Regular Agenda.
Council advised on August 26th to not have a Consent Agenda at Boards and Commission meetings; previously
posted items were moved and discussed on the Legislative Regular Agenda.
Legislative Regular Agenda
The Board will individually consider and possibly take action on any or all of the following items:
Keith Brainard, Chair, called to meeting to order at 3:31 p.m.
A. Review minutes from the December 3rd, 2014 GGAF meetings – Danella Elliott, Executive
Assistant
Unanimously approved.
B. Purchase of Veeam/Exagrid Data Backup System from LH Computer Services for $73,162 –
James Davis, IT Operations Manager and Mike Peters, Information Technology Director
Mike Peters presented this item and noted that staff requests approval for the purchase of Veeam
software and Exagrid storage hardware as a data backup system for the City’s main server and storage
platforms. This product will routinely back up system data to both local and offsite devices to protect
against a major equipment or software failure, and also provides archive storage of older backups as
needed. The City’s existing product for this purpose is being discontinued in approximately one year,
which is why a replacement product is needed.
Mike noted that the item previously brought for GGAF’s approval was for maintenance, etc. This is
for new equipment/software. LF Computer Services is supplying these products under GSA contract
number GS-35F-4342D.
Unanimously approved.
C. Consideration and possible action for the approval to purchase vehicles in the amount of
$556,790.10 - Stan Hohman, Fleet Maintenance Supervisor and Micki Rundell, Chief Financial
Officer
Stan Hohman noted that these vehicles will be purchased through a public bid and cooperative
purchasing agreements. They have been included in the 2014/15 Annual Budget as being either
replacement of existing vehicles within the Fleet ISF or as new additions. Two of the vehicles are
replacements associated with the acquisition of the Western District.
He also informed the board that that Mac Haik and Don Hewlett were both “courtesy contacted”.
Stan pointed out that out of the 19 units requesting purchase approval, 11 of these are replacements
and 8 are new additions.
The board members would like a quarterly report of auction items to be reported to Council, as well
as to the GGAF Board.
Unanimously approved.
Item H was moved forward…
H. An Ordinance establishing the classifications and number of positions (Strength of Force) for
all the City of Georgetown Fire Fighters and Police Officers pursuant to Chapter 143 of the
Texas Local Government Code pertaining to Civil Service - Tadd Phillips, Director of Human
Resources and Civil Service
Tadd Phillips explained that Chapter 143 of the Texas Local Government Code, Section 143.021,
requires that the governing body of a municipality shall establish classifications and numbers of
positions by ordinance. This ordinance supplements the Ordinance that adopts the Annual Operating
Budget Plan as the ordinance that establishes the classifications and numbers of positions. This
“Strength of Force” Ordinance separates and details the specific classifications and numbers of Civil
Service positions. This is required each year.
The changes for this year are as follows:
Fire – Adding 9 new Firefighter positions
Police – Adding 3 new Police Officer/Detective positions, funded in April 1st, 2015.
Tommy suggested that Chief Nero and Tadd get together and take a closer look at positions, as it
seems to be “top heavy” with supervisors. He suggested that when it goes to Council, include a
table/work chart that answers questions of “who reports to who”. He thinks this will help to answer
any questions that might arise.
Ralph asked him to make sure levels are in place and that we will continue to be competitive in the
market.
Unanimously approved.
I. Consideration and possible action to approve an embedded technician to be provided by
Convergint Technologies, the City’s current security, video surveillance, and access control
provider, in the amount of $81,700.00. Trish Long, Facilities Supervisor, Eric Nuner, Parks
and Recreation Assistant Director and Laurie Brewer, Assistant City Manager
Trish Long explained that Convergint Technologies is the City’s security, video surveillance, and
access control provider. Currently, when service is needed, a call is placed for a technician that may
or may not be familiar with our facilities’ security systems. Convergint Technologies will provide a
trained embedded technician to facilitate City-wide security service, preventative maintenance, and
installation work. This person will be an employee of Convergint Technologies, but have dedicated
time to the City. This technician will be familiar with the City’s current security systems and will
provide all preventive and current maintenance needs, and we will not be charged for the maintenance
or repair call, just a device charge that may need replacement. The City currently pays approximately
$60,000 per year which includes a customer service plan and calls for service. For the additional
$20,000 cost, the City will gain a preventative maintenance plan, a dedicated and trained technician
on City security systems, and support for the increased security devices and cameras with the Public
Safety Complex going on line in the near future.
The technician will be dedicated half-time at City facilities on predetermined days during the course
of one full year upon approval. The intent and advantage to the City will include faster response times
and increased service levels as the technician will have an intimate awareness of each of the security
items, locations, and processes. Other companies in the Central Texas area using an embedded
technician for their security needs are Seton Hospital Network and Valero. They are currently
negotiating proposals with Georgetown ISD and Capital Metro.
This technician will also help in developing additional process (Account Playbook) for increased
efficiency for project and service work in the future.
This document describes the dedicated resource responsibilities for the ongoing support,
programming, and service of the Lenel Access Control System and Avigilon VMS along with other
service requirements for the City of Georgetown security needs. This technician will be licensed by
the Texas Department of Private Security Bureau as a part of the B10716C License held by
Convergint Technologies with Texas DPS and will comply with all Criminal and Security
background reviews required by the State of Texas. The dedicated resource will be responsible for
the overall management of the existing Lenel Access Control System as well as the Avigilon Video
Management System and will report directly to your facility on a regularly scheduled basis to perform
the assigned tasks as needed.
Trish noted that we are doubling the amount of devices we have to monitor/maintain. She answered
questions about the number/location of cameras. It was suggested to create a written policy for
uniformity as to the length of time back-ups are retained, i.e., Level 1 Security, Level 2 Security, etc.
Staff is recommending Convergint Technologies provide the City with an embedded technician in the
amount of $81,700.
Unanimously approved.
J. Consideration and possible action to award outdoor pool deck recoating and repairs at the
Georgetown Recreation Center to Progressive Commercial Aquatics, Inc. of Manor, Texas in
the amount of $91,000.00. Trish Long, Facilities Supervisor, Eric Nuner, Parks and Recreation
Assistant Director and Laurie Brewer, Assistant City Manager
Trish explained that this was first brought to GGAF in October and at that time, the Board asked for
further information. Staff contacted several other municipalities including Baytown, The Woodlands,
San Marcos, Austin, and Temple. All have utilized the product within the last six years and reported
no issues. Several of them reported the same issues with early failure of other products. One also
noted they are currently replacing a pool deck surface with Advanced Coating. Based upon
discussions with other municipalities and their experiences, we feel maintaining our original
estimated 10 year repair/replacement schedule will be sufficient for the Advanced Coating.
The outdoor pool at the Recreation Center averages over 9,000 patrons annually and remains a very
popular destination for recreation center members and day pass users. The current pool deck coating
has deteriorated over the last 6 years resulting in trip hazards and areas where the coating has chipped
away. Staff had planned for the replacement of the pool deck since the recreation center was opened
and was originally planned for a 10 year replacement schedule. However, it is important to replace
this coating now to maintain a safe, accessible, slip resistant and cool surface for the patrons to utilize
while enjoying the outdoor pool. The surface area of the outdoor pool deck is approximately 18,700
square feet.
The City has a long relationship with Progressive Aquatics and they have completed many aquatic
projects over the years. Their Advance Coatings has been utilized by the City at the Recreation Center
indoor pool for over a year as well as River Ridge Pool with good success over the last seven months.
Staff previously utilized three other options prior to applying the Advanced Coatings at the indoor
pool but they all failed within two months. Advanced Coating utilizes a 4% PVA acrylic polymer
whereas their primary competitor’s specification is a 3% polymer. Their formulation creates a
stronger, more durable product.
Progressive Commercial Aquatics is the sole dealer for Advanced Coating Inc. in Texas. The
Purchasing Department has verified this purchase meets Sate purchasing requirements for a sole
source purchase. Additionally, staff has verified this product is available through a BuyBoard
cooperative purchasing contract but the City is receiving a deeper discount than is provided through
this agreement.
Staff recommends the approval of the sole source project for pool decking repair at the Recreation
Center outdoor pool to Progressive Commercial Aquatics, Inc of Manor, Texas in the amount of
$91,000.
Unanimously approved.
D. Provide a current state of the alarm program – Wayne Nero, Police Chief
Chief Nero explained the current state of the alarm program and went over options for fees and fines
and asked for direction for opportunities to revise the ordinance.
The Board agreed on Option 2 and to make sure that Public Awareness is considered, i.e. notifying
the public that property owners of alarms must register annually via the Williamson County Sun, as
well as putting in the Reporter.
Option 2 with recommended changes:
Registered alarm permit holder fees:
• Residential
o $25/yr
Annual Renewal – (no 3 year renewal option offered)
• Commercial
o $35/yr
Annual Renewal – (no 3 year renewal option offered)
• Education available
o Free crime prevention specialist for education (included)
o Provide alarm course to educate public (included)
Non-registered alarm penalties for no alarm permit:
o 1 free for no alarm
Notice sent with information and 30 days to obtain permit
o If no permit is obtained within the 30 days, and after 2+ and each subsequent 30
day notice, if they have not obtained a permit within the 30 days, assess a fine of:
$200/each plus non permit fee
Panic alarm penalties for repeat offenders – set a separate policy:
• Provide separate fine schedule for repeat false alarm offenders if the alarm is a panic alarm
• Graduated fee structure for
o 1 free
Chance to educate
o 2 - 3
$100/each
o 4 – 5
$250 each
o 6 +
$500/each
The Board agreed that there is no need to bring this before GGAF Again. It will be on the first
Council meeting in January.
E. Consideration and possible action to approve the purchase of two Panasonic Toughbook CF53
laptop computers and 10 Panasonic FZG1 Tablet Computers and associated accessories. – Clay
Shell, Assistant Fire Chief
Chief Sullivan noted that Austin Ribbon and Cable is a local Panasonic Reseller. DIR Contract# DIR-
TSO-2520
These items will be used in the implementation of the Georgetown Fire Department Medical
Response program.
The two CF53 laptop computers will be utilized in the cabs of the two (2) transitional response
vehicles (TRV’s). These computers will maintain communications with and display the City’s
Computer Aided Dispatch System (CAD). This enables the personnel in the unit to see maps, incident
details, location history and notes from other responders.
The FZG1 tablet computers will be utilized by medical personnel to maintain Patient Care Reports
(PCR). These devices will also allow communications with medical monitors, area hospitals and
surrounding agency responders.
The City has used Panasonic computers for more than 10 years due to exceptional customer support,
dependability and continuity within the organization, and staff recommends purchasing the following:
Cost breakdown:
Two CF52 laptop computers with four year warranty @ $3068.00
Ten FZG1 tablet computers with 4 year warranty @ $3,239.58
Ten FZG1 laptop cradles @ $292.54
Ten Extended Life Tablet Batteries @ $153.96
Ten AC Adaptors @ $61.59
Total - $43,612.70
Unanimously approved.
F. Consideration and possible action to approve the purchase of the Phoenix G2 Fire Station
Alerting System by US Digital Designs (USDD) from SHI International through the existing
government contract purchase price not to exceed of $230,000.00 – John Sullivan, Fire Chief
Chief Sullivan explained that the Phoenix G2 Fire Station Alerting System will help reduce dispatch call
processing time by instantaneously alerting the right fire unit / fire station so we can respond more efficiently
and with better information.
This system integrates with our OSSI CAD system, providing fully automated text-to-speech voice
dispatching alerts. Using a calm, crystal-clear male or female voice, dispatches are delivered digitally or through a
voice radio system from the dispatch center to the fire stations.
VoiceAlert is an alternative to a person speaking dispatch information for each call. The speech is generated in a
fraction of a second and sent to individual stations simultaneously, relieving dispatchers of the time-
consuming task of speaking with each station. This reduces human error and the dispatcher workload and stress,
enabling them to perform other time-critical tasks, such staying in communications with the caller or as processing
the next call.
Staff recommends purchasing the Phoenix G2 Fire Station Alerting System by US Digital Designs (USDD)
from SHI International through the existing government contract purchase price not to exceed of $230,000.00.
Unanimously approved.
G. Consideration and possible action to approve the purchase of three (3) Phillips HeartStart MRx
ALS Cardiac Monitor/Defibrillators from Phillips Healthcare through the purchasing
cooperative Inter-local agreement with Williamson County. Contract purchase pricing
resulting from the Williamson County RFP would be $74,678.00 for three (3) units – Hank
Jones, Battalion Chief
Chief Sullivan noted that Phillips Healthcare is a division of Phillips Electronics North America
Corporation. (Dealer Direct). The Phillips HeartStart MRx Cardiac Monitor/Defibrillator will be
used in the implementation of the Georgetown Fire Department Medical Response program and will
be utilized on the transitional response vehicles (TRVs).
The Phillips HeartStart MRx Cardiac Monitor/Defibrillator will be purchased off of the Williamson
County RFP specifications creating a regionally compatible likeness with the existing Williamson
County EMS model. The Georgetown Fire Department EMS Steering Committee evaluated three
Cardiac Monitor/Defibrillator vendors including the ZOLL X series, Phillips MRx and Physio
Control Lifepak 15.
Chief noted that they are applying for a grant to get one per TRV, etc. Staff recommends purchasing:
Cost breakdown:
$65,909.00 – three (3) Phillips HeartStart MRx Cardiac Monitor/Defibrillator
$8,769.00 – three year extended service warranty
Total - $74,678.00
Unanimously approved.
K. Consideration and possible action to contract with Carl Walker, Inc for Professional Services
for a Comprehensive Parking Study & Conceptual Design of Parking Structure for the amount
not to exceed $175,000 –Laurie Brewer, Assistant City Manager
In FY 2013/2014 City Council appropriated funds to complete a comprehensive study and conceptual
design related to downtown parking and a downtown parking structure. An RFQ was issued on
September 18th and closed on October 1st. Five proposals were submitted and on September 23, City
Council approved the selection committee to review the proposal. Interviews were held on November
4th and Carl Walker, Inc was unanimously chosen as the most qualified proposer.
Laurie noted that staff is requesting approval to contract with Carl Walker, Inc for Professional
Services for a Comprehensive Parking Study & Conceptual Design of Parking Structure. The study
will provide the best location, best price, enhancing what we already have, and look at long range
plans, etc. Tommy noted that we want to make it as comprehensive as possible and make sure growth
patterns, density, etc. are all taken into consideration, as this study needs to encompass all areas and
be as comprehensive as possible. This will ensure that bases are covered and they are familiar with
all needs and existing sites, etc.
The original proposal called for only four site visits for a total cost $160,760. Staff is requesting
additional site visits in order to accommodate, include, and inform additional stakeholders during the
study development. The additional site visits, (up to 8, including labor and travel costs) are the source
of the request for the price increase of the contract, which will not exceed $212,550.
Unanimously approved.
L. Discussion and possible direction to provide feedback on the potential Request for
Qualifications for Professional Services for Architectural Design and Engineering for
Renovating the 1987 Library and the Georgetown Communication and Technology Building, a
New Plaza Canopy, and Preparing a Master Signage Plan for the City Center - Laurie Brewer,
Assistant City Manager
Laurie reminded the Board that the City is seeking professional architectural and engineering
consultants to provide architectural services for Professional Services for Architectural Design and
Engineering for:
• Renovating the 1987 Library;
• Renovating the Georgetown Communication and Technology (GCAT) Building;
• A New Plaza Canopy, and;
• Preparing a Master Signage Plan for the City Center.
This is very high profile, and a center point. She would like feedback and discussion on the RFQ
before it goes out. These qualifications were developed relying upon the recently updated Downtown
Master Plan, the Georgetown City Center feasibility study completed by Winter & Company and the
Facilities Master Plan Study completed by Ron Hobbs Architects. The draft RFQ was reviewed by
internal staff and Winter & Co. This information is being provided to the GGAF to determine if there
are additional qualifications that should be considered in procuring these professional services.
Tommy suggested that we wait until the parking study is complete to make sure all are
communicating and on the same page. Mayor suggested Councilmembers Hammerlun and Jonrowe
and asked that if the GGAF Board has additional criteria, to please let her know. We want to make
sure that the firm understands the culture of Georgetown, capture the feeling since it is relatively
unique and look at the existing projects.
Council funded $1,280,000 in fiscal year 2014-2015 for phase 1 of the Downtown City Center
project. This includes funding for designing the GCAT renovation and constructing the GCAT
renovation ($600,000), and designing the renovation 1987 Library ($300,000). Staff will be
requesting funding for renovating the 1987 Library in FY 2015/2016 ($1,700,000).
Laurie said that this is a really big project and wanted consensus that we are moving in the right
direction. Right now, the process is (1) gather information for the RFQ (2) Issue/advertise RFQ
through the end of January (3) Council Selection Committee in January (4) Select the firm that is
right and understands our future needs.
The Board requested updates to GGAF as the project moves along, but feels confident that everything
is progressing as it should.
Item O was moved up on the Agenda.
O. Consideration and possible action to recommend a Resolution of Support for legislative changes
that will encourage changes in sales price disclosure practices that result in equal and uniform
property taxes within the State - Micki Rundell, Chief Financial Officer
Micki reminded the Board that this item was originally discussed at the October 29, 2014 General
Government and Finance Advisory Board (GGAF) meeting. At that time, it was recommended that
Micki and Joe Pondrom work with WCAD to develop a Resolution of Support to present to the
legislation and to make the public more aware.
Currently, the State of Texas does not mandate sales disclosure, but due to residential real estate
websites that share much of this information, residential values are fairly representative of actual
market conditions. Yet, at the same time, WCAD has very limited access to commercial and high end
residential property sales and market information, and thus, those related properties are often
undervalued and pay less than their fair share of property taxes. Various professional associations,
including tax assessors and appraisal districts are working with legislators in support of changes to the
State Tax Code to allow for full disclosure and require sharing attorney’s fees fairly among parties.
Alvin Lankford, Chief Appraiser, Williamson Central Appraisal District provided information about
this topic at the November 25 Council workshop.
The Resolution of Support for requiring the disclosure of sales prices for all property types in Texas
was included. If approved by City Council on December 9, the resolution will be forwarded to
legislative leaders in Austin.
Unanimously approved.
M. Consideration and possible action to recommend a resolution giving staff the approval to
conduct business with various banking institutions and to appoint “Representatives of the
Depositor” – Susan Morgan, CPA, Finance Director
Susan explained that this resolution authorizes the City’s investment officers, listed below, to be
Representatives of the Depositor and each are hereby authorized to open accounts, to issue letters of
instruction, and to take all other actions deemed necessary or appropriate for the purpose of
conducting non-primary bank depository services.
This resolution will also serve as an Incumbency Certificate for those institutions requiring it. Any
action taken will be in accordance with the City’s Investment Policy. TexasTERM/TexasDAILY,
Bank of New York Melon, BankTexas and Independent Bank have been added to the list since it was
last updated in January 2013.
There are no changes to the City’s investment officers:
Micki Rundell Chief Financial Officer
Susan Morgan Finance Director
Lisa Haines Controller
Staff is recommending an update to the banking authorization resolution. It is required when staffing
changes occur, but staff recommends it be updated periodically along with the Investment Policy
review. This is an administrative item presented for GGAF’s review.
Unanimously approved.
N. Review of proposed changes to the City’s investment policy – Susan Morgan, CPA, Finance
Director
Susan Morgan went over the Investment Policy presentation and noted that the City’s financial
investments are guided by the City’s investment policy, which was created in compliance with
Chapter 2256 of the Texas Government Code. This state law requires that a governing body review
its investment policy annually. Staff will review the policy, investment activity during the 2013/14,
investment strategies and provide a market review & outlook by the City’s investment advisor. The
City’s policy was last reviewed by GGAF on December 2, 2013 and approved by Council on
December 10, 2013.
The proposed changes to the policy include only minor adjustments, outlined below. The Texas
Legislature has not met since the last policy update; however, staff will monitor any changes made
during its upcoming 2015 session.
Staff recommends the following minor updates to the policy.
• Section 1.3 Objectives – Move the Texas Government Code cite to the front of the policy.
• Section 4.1.2 US Treasuries and Agencies – Expand definitional language to this section.
• Section 6.2 Annual Reporting – Add clarification to specify GGAF for the annual reporting.
• Broker/Dealer Listing – Remove Bank of America/Merrill Lynch from the approved list. This
firm will not sign the requisite investment policy certifications and is no longer active in the
Texas local government market. The remaining 6 firms give the City more than adequate
selection options.
Tommy asked to see a copy of the Banking RFP to see if there are better options, etc.
Ms. Anderson, with the City’s Investment Advisor, Valley View Consulting L.L.C., presented an
overview of the City’s investments and market conditions at the meeting. She answered questions
and discussed current market conditions, etc.
Mr. Brainard had to exit the meeting due to a prior commitment.
The Board thanked Ms. Anderson for her input and information following her presentation.
O. Adjourn
Adjournment
The meeting was adjourned at 5:45 pm.
_____________________________________
Board Chair
City of Georgetown, Texas
Government and Finance Advisory Board
January 7, 2015
SUBJECT:
Consideration and recommendation to implement an expansion of the City’s Infor Enterprise
Asset Management software to enable its use for vehicle fleet management at the City of
Georgetown’s Fleet Service Center - Stan Hohman, Fleet Maintenance Supervisor and Chris
Bryce, Assistant Director of IT
ITEM SUMMARY:
Staff recommends expanding the City’s existing enterprise asset management software (Infor
EAM) to enable its use for managing the City’s vehicle fleet. Currently, the City’s Fleet Service
Center (FSC) uses a product named RTA to manage the fleet. This software was purchased in
1998 and its current release no longer meets the needs of the FSC:
User interface hinders technician workflows, inaccurately tracks work time, and prevents
efficient access to data
Insufficient data tracking on issues such as total cost of ownership, vehicle replacement
estimation, technician downtime, and vehicle usage
Lacks a mobile application that would allow the use of less expensive tablet computers
Does not send notifications to drivers and other FSC customers for scheduled maintenance
Does not provide sufficient predictive maintenance based on vehicle mileage and other
indicators
No automated integration with the City’s fuel tracking system (Fuelman)
Does not support easy creation of custom reports
Product is not scalable to accommodate larger fleet sizes in the future
RTA should be replaced by the Infor Fleet module. This is an add-on to the City’s existing Infor
EAM system that leverages existing hardware, software, and processes to provide a complete
range of fleet management functionality:
Infor Fleet is considered an industry leader in fleet management
Allows the City to leverage existing software, hardware, and processes that are already in
place
Manages fleet assets over their full lifecycle - from purchase to disposal
User interface provides highly efficient time tracking for technicians as well as a mobile
applications that enable the use of tablet computers such as iPads
Sends notifications to drivers and other customers on topics such as scheduled vehicle
maintenance
User licenses can be shared by all Infor EAM users, not just those in the FSC
Tracks both corrective and preventative maintenance while providing extensive predictive
maintenance
Integrates with City’s Fuelman system
Software architecture allows it to be scaled up to any sized vehicle fleet
FINANCIAL IMPACT:
Total cost of this project is expected to be $138,516 ($52,375 software costs, $86,141
implementation). The yearly cost of software maintenance is 20% of total purchase costs. First
year of maintenance is included in the total cost.
FY 2014 amount is budgeted under accounts 570-5-0641-51-741 and 570-5-0641-52-102.
SUBMITTED BY:
Stan Hohman, Fleet Maintenance Supervisor and Chris Bryce, Assistant Director of IT
ATTACHMENTS:
Description Type
Infor Fleet Mgmt Attachment Cover Memo
INFOR FLEET
An add-on to the City’s INFOR
asset management software that
enables its use for vehicle fleet
management
Fleet Facts
• 495 vehicles
• Avg. $1.7 million on new vehicles / yr
• 205,000 gals of fuel used last year
• 1/5 of vehicles under warranty
• 8 FSC staff (5 techs; 1 tech / 99 vehicles)
• 4031 work orders performed last year
• FSC operating budget of $1.2 million
RTA (current Fleet system)
• Purchased in 1998
• Approximately 220 vehicles
• Fleet services has outgrown
• Not meeting needs, slowing work
processes
Why Infor Fleet
– Part of existing Infor EAM system, fully meshed into
existing software (just adds new menus, functions)
– Extremely scalable (essentially unlimited)
– Reduces the IT “complexity tax”
– Truly manage vehicles as assets across full lifecycle
– Corrective, preventative and predictive maintenance
– Increase access to fleet information
– Parts and inventory management
– Maximize warranty recovery
Example of Infor Fleet report
Fleet Software Categories
• RTA (lower cost, less features, not fully enterprise class,
not part of larger asset management system)
• Asset Works (mid-level costs, full featured, enterprise
class, part of larger asset management suite)
• Infor (industry leader, mid-level costs, full featured,
enterprise class, part of larger asset management suite)
• Oracle Fleet, IBM Maximo (high costs, expansive
features (cross into “Transportation Management”,
enterprise class, part of very large software suites)
Pricing
• Software: $52,000
• Consulting (design, configuration, training,
data conversion, reports, travel): $83,000
• Hardware (iPads, tablets, barcode printer):
$3,000)
• Project funded in the 2015 IT budget
City of Georgetown, Texas
Government and Finance Advisory Board
January 7, 2015
SUBJECT:
Purchase of replacement Cisco Network Switches from Presidio Networked Solutions for
$77,052.60 - James Davis,, IT Operations Manager and Mike Peters, Information Technology
Director
ITEM SUMMARY:
Staff requests approval for the purchase of replacement Cisco network switches due to a number
of our existing switches will be beyond their “End of Sale” and “End of Support” dates by mid
2015. Presidio Networked Solutions is providing these products under DIR contract DIR-TSO-
2544.
FINANCIAL IMPACT:
This purchase was included in the FY 2015 annual budget, and will be accounted for in accounts
570-5-0641-52-330.
SUBMITTED BY:
James Davis,, IT Operations Manager and Mike Peters, Information Technology Director
ATTACHMENTS:
Description Type
Presidio Switching Refresh Cover Memo
11590171-02QUOTE:
12/09/2014DATE:
PAGE:1 of 2
FROM:Presidio Networked Solutions Group, LLC
Bill Short
7600B N. Capital of Texas Highway
Suite 130
Austin, TX 78731
bshort@presidio.com
(p) (512) 795-7133
(f) (512) 795-7194
TO:City of Georgetown
James Davis
300-1 Industrial Avenue
GEORGETOWN, TX 78627
JAMES.DAVIS@GEORGETOWN.ORG
(p) 512-930-3656
Shawnda Freeman
Bill Short
Title:
Inside Sales Rep:
Account Manager:
11590171-02 - Switching Refresh - Phase 1
Contract Vehicle:Texas DIR-TSO-2544 CISCO Branded Equipment and
Related Services
Customer#:CITYO589
#Part #Description Unit Price Ext PriceQty
WS-C3850-48U-L
1 WS-C3850-48U-L Cisco Catalyst 3850 48 Port UPOE LAN Base 10 $64,980.00$6,498.00
2 CAB-TA-NA North America AC Type A Power Cable 10 $0.00$0.00
3 S3850UK9-36E CAT3850 Universal k9 image 10 $0.00$0.00
4 STACK-T1-50CM 50CM Type 1 Stacking Cable 10 $0.00$0.00
5 C3850-NM-BLANK Cisco Catalyst 3850 Network Module Blank 10 $0.00$0.00
6 PWR-C1-1100WAC 1100W AC Config 1 Power Supply 10 $0.00$0.00
7 PWR-C1-BLANK Config 1 Power Supply Blank 10 $0.00$0.00
$64,980.00Total:
C3850-NM-4-10G=
8 C3850-NM-4-10G=Cisco Catalyst 3850 4 x 10GE Network Module 4 $9,120.00$2,280.00
$9,120.00Total:
GLC-LH-SMD=
9 GLC-LH-SMD=1000BASE-LX/LH SFP transceiver module, MMF/SMF, 1310nm, DOM 4 $2,268.60$567.15
$2,268.60Total:
STACK-T1-3M=
10 STACK-T1-3M=3M Type 1 Stacking Cable 4 $684.00$171.00
$684.00Total:
Sub Total:$77,052.60
Grand Total:$77,052.60
11590171-02QUOTE:
12/09/2014DATE:
PAGE:2 of 2
THIS PROPOSAL IS GOVERNED BY THE TERMS AND CONDITIONS SET FORTH IN DIR CONTRACT NUMBER LISTED ABOVE.
STATE OF TEXAS vendor ID 17605152499
Customer hereby authorizes and agrees to make timely payment for products delivered and services
rendered, including payments for partial shipments
Customer Signature Date
City of Georgetown, Texas
Government and Finance Advisory Board
January 7, 2015
SUBJECT:
Consideration and possible action to approve a loan agreement with Steele Georgetown LIHTC,
LLC. to assist in securing Housing Tax Credits for the renovation of 55 existing affordable units at
Georgetown Square Apartments located at 206 Royal Drive.—Jennifer C. Bills, Housing
Coordinator and Laurie Brewer, Assistant City Manager
ITEM SUMMARY:
The owners of the Georgetown Square Apartments will be applying for 9% Housing Tax Credits
through the Texas Department of Housing and Community Affairs (TDHCA). This is a highly
competitive process, with approved and unapproved applications separated by just few points. As
one of the scoring criteria, applicants can earn points by securing financial support from the local
jurisdiction, provided in the form of a grant, in-kind fee waivers, or a loan with a minimum five-
year term with an interest rate no greater than 3%.
Steele Georgetown LIHTC, LLC is requesting a minimum of $30,000 and a maximum of
$450,000. The funding requirements are based on the number of units in the project and the
population on the city. Below is the required amount of funding for each point total. Points Funds
Needed For Points 11 $450,000 9 $150,000 7 $30,000
Two additional points can be gained by committing the funding in a resolution by February 27,
2015, which is the application deadline. The details of the loan agreement can be finalized after
that date and any loan would be executed only after the tax credits are awarded.
One additional point can be received for extending the term to 15 years, bringing the total points
possible for this scoring item to 14. The applicant has agreed to set up an account to provide cash
collateral to fully secure the loan and minimize the risk to the City.
In addition to the request for contribution, the applicant has also request a Resolution of Support,
which will go to the Housing Advisory Board on January 14 and City Council on January 27. This
requires no financial commitment and it is an application requirement.
FINANCIAL IMPACT:
With the requirement of full cash collateral, the financial impact will be primarily in staff time for
administration.
SUBMITTED BY:
Jennifer C. Bills, Housing Coordinator and Laurie Brewer, Assistant City Manager
ATTACHMENTS:
Description Type
GTSquare Background Info Cover Memo
GT Square Past City Participation Cover Memo
GT Square Request from Steele Cover Memo
GT Square TDHCA Qualified Action Plan Requirements Cover Memo
GT Square Local Loan Guaranty v1 Cover Memo
GT Square Local Loan Agreement and Note Cover Memo
GT Square Local Loan Pledge and Security Agreement Cover Memo
Housing Advisory Board Staff Report
Royal Oaks Subdivision - Rezoning Page 1 of 3
OF to MF-2
Meeting Date: January 14, 2015
Item Details
Project Name: Georgetown Square Apartments
Project Address: 206 Royal Drive
Location: Royal Drive, West of North Austin Avenue
Total Acreage: 3.2 acres
Legal Description: Royal Oaks Subdivision, Lots 1 & 2
Applicant: City of Georgetown
Property Owner: Steele Georgetown LIHTC, LLC
Contact: Paul Moore, Steele Properties, LLC
Existing Zoning: High Density Multifamily (MF-2) District
Tax Exempt: No
Applicant’s Request
Steele Georgetown LIHTC, LLC is requesting a resolution of support from the Georgetown City Council
to apply for the Housing Tax Credit (HTC) program through the Texas Department of Housing and
Community Affairs (TDHCA).
Financing
The applicant is seeking to secure financing through the Low Income Housing Tax Credit
Program to receive 9 % housing tax credits. Projects seeking credits are scored using the
criteria set by TDHCA in this competitive process. This project is a rehabilitation project that
is ensuring the continuation of existing affordable units. Because of this, they are applying
within a special category of Rural Set-aside, so it would not compete against other new
construction projects. The City of Georgetown, when compared to other cities of similar size
throughout Texas, has two times the average number of tax credit units. This is not a market
measure, but simply a statistical comparison. Due to the two times rule, any new application
within Georgetown is required to secure a Resolution of Support in order to apply.
Site Information
This property is located on both sides of Royal Drive between North Austin Avenue and the dead end of
Royal Drive east of I-35. See Exhibit A.
The existing 55-unit complex was constructed in 1973 through the Project-based Section 8 Department of
Housing and Urban Development (HUD) property. Since that date, the property has not had any
significant renovations or upgrades.
This renovation will bring the accessible units up to current Americans with Disability Act
standards as well as improve the energy efficiency of the units. Units will be upgraded with
low flow faucets and toilets, additional insulation, new HVAC systems, ceiling fans and
Housing Advisory Board Staff Report
Georgetown Square Apartmets Page 2 of 3
Resolution of Support 2015
energy efficient light fixtures. Additional amenities will be added with addition of a
clubhouse for residents.
Proximity to other Multifamily and Affordable Developments
Within a one-mile radius, there are 10 existing multifamily developments and one under construction
(Gateway Northwest). (Exhibit B)
Development Address Units
Income
Restricted Program
Mariposa at River Bend 121 River Bend Drive 180 Yes
Senior
HTC
Cypress Creek at River Bend 120 River Bend Drive 200 Yes HTC
Westwood Townhomes 200 River Bend Drive 110 No
Shady Oaks 501 Janis Drive 60 Yes
Section
8
Gateway Northwest
1617 Northwest
Boulevard 180 Yes HTC
Cedar Ridge Apartments
1500 Northwest
Boulevard 60 Yes USDA
Georgetown Square 206 Royal Drive 60 Yes
Section
236
Apple Creek 302 Apple Creek Drive 176 No
Parkview Place 2111 N. Austin Avenue 176 No
Village Park Condominiums
300 San Gabriel Village
Boulevard 54 No
Two Rivers Apartments 105 N. Austin Avenue 179 No
Affordability
All of the units are rented to tenants that make less than 30% of Area Median Income, per the
Section 8 and Tax Credit requirements.
Financial Impact to the City
The applicant is requesting a minimum of $30,000 in a city loan to receive at least 7 points in
the TDHCA scoring criteria.
Future Application(s)
The following applications will be required to be submitted:
Site Plan / Construction Plan for the addition of a community room;
Building permits for construction or rennovations;
Certificates of Occupancy for changes in ownership.
Housing Advisory Board Staff Report
Georgetown Square Apartmets Page 3 of 3
Resolution of Support 2015
Attachments
Exhibit A – Location Map
Exhibit B – Location of Multifamily Developments
Exhibit C– Application Packet
Submitted By
Jennifer C. Bills, AICP, LEED AP, Housing Coordinator
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Legend
Georgetown Square
One Mile Area
Exhibit BGeorgetown Square ApartmentsProximity to other Multfamily
Northwest Apartments
Mariposa
Westwood Townhomes
Cypress Creek
Shady Oaks Gateway Northwest
Cedar Ridge Apartments
Georgetown Square
AppleCreek
ParkviewPlace
San GabrielCondos Two Rivers
Past City participation in affordable housing development
Denison Development--San Gabriel Senior Village (100 tax credit senior
units)
On May 10, 2005, City Council approved a 9-month loan for $360,000 for
the on-site construction costs for the new senior apartment complex. The
loan was fully cash collateralized. This earned the developer the maximum
amount of points on their application with TDHCA.
Habitat for Humanity—Old Mill Village (20 Single Family Homes)
In the 2005/06 Management Services budget, the city budgeted
$35,000 to cover water and wastewater impact fees of approximately
6.5 of the 20 lots in the development.
From 2005-2008, the City received $591,529 in Community
Development Block Grants and administered the funds for the
improvement of Leander Street and Railroad Street and drainage in
conjunction with the Old Mill Village project.
Georgetown Housing Authority--Sierra Ridge (177 tax credit, 3 market
rate units)
At the December 11, 2007 the City Council approved:
$779,844 of Utility Connect, Impact, and Parkland Dedication fees.
o When the project did not move forward, the fee waivers were
official rescinded on March 9, 2010.
$690,000 in GTEC funds for the construction of Janis Drive and
Washam (now Fontana) Drive. This was a Performance Agreement,
and when the project did not move forward, the agreement was
nullified. It was officially terminated on November 27, 2012 to
resolve title issues during the development of Gateway Northwest
Apartments.
Texas Housing Foundation—Gateway Northwest Apartments (177 tax
credit, 3 market rate units)
At the February 26, 2013 meeting, City Council approved $100,000 in
permit review and inspection fee waivers. This contribution was
required by the Department of Housing and Urban Development to
approve the issuance of FHA mortgage insurance. The fee waivers
covered approximately 25% of total city permitting and utility fees.
LIHTC ‐ City of Georgetown
Proposed Loan Structure
Steele Georgetown LIHTC LLC is in the process of applying to TDHCA for 9% tax credits in the upcoming
application round. In order to be competitive in regards to scoring, per section 11.9 (d) 2 of the 2015
Texas Department of Housing and Community Affairs Qualified Allocation Plan “Commitment of
Development Funding by Local Political Subdivision” (the “QAP”), it is critical that we are able to receive
a loan from our local municipality, the City of Georgetown. Below is a proposed loan structure and
terms. Please note this loan would be 100% cash collateralized and guaranteed by Borrower’s parent
company.
Terms & Conditions
Lender: City of Georgetown
Borrower: Steele Georgetown LIHTC LLC
Guarantor: Steele Properties, LLC
Max Loan Amount: $450,000 (11 pts)
Middle Loan Amount: $150,000 (9 pts)
Min Loan Amount: $30,000 (7 pts)
Purpose of Loan: Proceeds of the loan will be used in connection with the rehabilitation of Georgetown
Square Apartments pursuant to the tax credit transaction. Borrower is planning an approximate
$2,750,000 ($50,000 / unit) renovation.
Term of Loan: 15 Years
Loan Amortization: 40 Years
Repayment Terms: Interest only payments for the first 24 months. Even monthly installments of
principal and interest payments amortized over the remaining 13 years.
Interest Rate: 3%
Origination Fee: Borrower shall pay an origination fee equal to 1% of the loan amount.
Collateral: Borrower to provide cash in the full amount of the loan as collateral. Borrower will set up a
new account with a local bank for this purpose.
Prepayment Penalty: There shall be no prepayment penalty associated with this loan and the loan may
be prepaid at any time upon notice to Lender.
Acceptance of Commitment: Commitment of final loan terms to be executed by February 15, 2015.
Acknowledgement: Pursuant to Section 11.9 (d) 2 of the QAP, funds for the loan shall not be provided
to Lender by Borrower or an affiliate.
Closing Date: Anticipated closing/ funding date to be August 15, 2015.
Alternatively, if the City prefers, a 3rd party lender can provide the funds to the City of
Georgetown, which can then lend the money to Steele Georgetown LIHTC LLC. In this scenario
Steele Properties LLC will also provide a guaranty to the City and Borrower will provide cash in
the full amount of the loan as collateral.
Background on the TDHCA Qualified Action Plan requirements.
For the Housing Tax Credit program administered by the Texas Department of Housing and
Community Affairs (TDHCA), the application process is governed by a Qualified Allocation
Plan (QAP) that provides the rules and scoring criteria for applicants. This QAP is updated
yearly.
In the 2015 QAP a project that receive funding from the local jurisdiction, in the form of a loan,
grant or in‐kind contribution, such as fee waivers can receive between 7 and 14 points. The total
number of points that can be gain is 14. The amount of funding that must be provided is
calculated using the total number of units in the project and the population of the local
jurisdiction.
These funding amounts can be provided in the form of a grant, in‐kind fee waivers, or a loan
with a minimum five‐year term with an interest rate no greater than 3%.
The project can receive two points if the funding is secured by resolution before the March 1,
2015 application deadline. One extra point can be gained if the funds are a grant or a loan with
a 15 year term with a maximum 3% interest rate.
Housing Tax Credit Qualified Allocation Plan 2015
(iii) eight and one-half (8.5) points for a resolution from the Governing Body of that county expressly setting forth that the county supports the Application or Development; or (iv) seven (7) points for a resolution from the Governing Body of that county expressly setting forth that the county has no objection to the Application or Development. (C) Within a county and not within a municipality or the extraterritorial jurisdiction of a municipality: (i) seventeen (17) points for a resolution from the Governing Body of that county expressly setting forth that the county supports the Application or Development; or (ii) fourteen (14) points for a resolution from the Governing Body of that county expressly setting forth that the county has no objection to the Application or Development. (2) Commitment of Development Funding by Local Political Subdivision. (§2306.6710(b)(1)(E)) An Application may receive up to fourteen (14) points for a commitment of Development funding from the city (if located in a city) or county in which the Development Site is located. Development funding from instrumentalities of a city or county will not qualify for points under this scoring item unless such instrumentalities first award the funds to the city or county for their administration, at least 60 percent of the governing board of the instrumentality consists of city council members from the city in which the Development Site is located (if located in a city) or county commissioners from the county in which the Development Site is located, or 100 percent of the governing board of the instrumentality is appointed by the elected officials of the city in which the Development Site is located (if located within a city) or county in which the Development Site is located. The government instrumentality providing Development funding under this scoring item may not be a Related Party to the Applicant. Development funding must be provided in the form of a construction and/or permanent loan with an interest rate no higher than 3 percent per annum and term of at least 5 years, a grant, an in-kind contribution, a contribution which will support the Development, such as vouchers, or combination thereof. Funds cannot have been provided to the Local Political Subdivision by the Applicant or a Related Party. Should the Local Political Subdivision borrow funds in order to commit funding to the Development, the Applicant or a Related Party to the Applicant can provide collateral or guarantees for the loan only to the Local Political Subdivision. HOME Investment Partnership Program or Community Development Block Grant funds administered by the State of Texas cannot be utilized for points under this scoring item except where the city, county, or instrumentality is an actual applicant for and subrecipient of such funds for use in providing financial support to the proposed Development. The Applicant must provide evidence in the Application that an application or request for the development funds has been submitted in the form of an acknowledgement from the applicable city or county. The acknowledgement must also state that a final decision with regard to the awards of such funding is expected to occur no later than September 1. A firm commitment of funds is required by Commitment or points will be lost (except for Applicants electing the point under subparagraph (C) of this paragraph). While the specific source can change, the funding secured must have been eligible at the time the Application was submitted. (A) Option for Development Sites located in the ETJ of a municipality. For an Application with a Development Site located in the ETJ of a municipality, whether located in an unincorporated Place or not, the Applicant may seek Development funding from the municipality or a qualifying instrumentality of the municipality, provided the Applicant uses the population of said municipality as the basis for determining the Application's eligible points under subparagraph (B) of this paragraph. Applicants are encouraged to contact Department staff where an Applicant is uncertain of how to determine the correct Development funding amounts or qualifying Local Political Subdivisions.
Page 20 of 33
Housing Tax Credit Qualified Allocation Plan 2015
(B) Applications will qualify for points based on the amount of funds at the levels described in clauses (i) - (v) of this subparagraph. For the purpose of this calculation, the Department will use the population of the Place from which the Development Site's Rural or Urban Area designation is derived. (i) eleven (11) points for a commitment by a Local Political Subdivision of the lesser of the population of the Place multiplied by a factor of 0.15 in funding per Low Income Unit or $15,000 in funding per Low Income Unit; (ii) ten (10) points for a commitment by a Local Political Subdivision of the lesser of the population of the Place multiplied by a factor of 0.10 in funding per Low Income Unit or $10,000 in funding per Low Income Unit; (iii) nine (9) points for a commitment by a Local Political Subdivision of the lesser of population of the Place multiplied by a factor of 0.05 in funding per Low Income Unit or $5,000 in funding per Low Income Unit; (iv) eight (8) points for a commitment by a Local Political Subdivision of the lesser of the population of the Place multiplied by a factor of 0.025 in funding per Low Income Unit or $1,000 in funding per Low Income Unit; or (v) seven (7) points for a commitment by a Local Political Subdivision of the lesser of the population of the Place multiplied by a factor of 0.01 in funding per Low Income Unit or $500 in funding per Low Income Unit. (C) Two (2) points may be added to the points in subparagraph (B)(i) - (v) of this paragraph and subparagraph (D) of this paragraph if the Applicant provides a firm commitment for funds in the form of a resolution from the Local Political Subdivision and provides a commitment for the same source(s) at Commitment. The resolution must reflect terms that are consistent with the requirements of this paragraph. (D) One (1) point may be added to the points in subparagraph (B)(i) - (v) of this paragraph and subparagraph (C) of this paragraph if the financing to be provided is in the form of a grant or in-kind contribution meeting the requirements of this paragraph or a permanent loan with a minimum term of fifteen (15) years, minimum amortization period of thirty (30) years, and interest rate no higher than 3 percent per annum. An Applicant must certify that they intend to maintain the Development funding for the full term of the funding, barring unanticipated events. For Applicants electing this additional point that have not yet received an award or commitment, the structure of the funds will be reviewed at Commitment for compliance with this provision. (3) Declared Disaster Area. (§2306.6710(b)(1)) An Application may receive ten (10) points if at the time of Application submission or at any time within the two-year period preceding the date of submission, the Development Site is located in an area declared to be a disaster area under the Texas Government Code, §418.014. (4) Quantifiable Community Participation. (§2306.6710(b)(1)(B); §2306.6725(a)(2)) An Application may qualify for up to nine (9) points for written statements from a Neighborhood Organization. In order for the statement to qualify for review, the Neighborhood Organization must have been in existence prior to the Pre-Application Final Delivery Date, and its boundaries must contain the Development Site. In addition, the Neighborhood Organization must be on record with the state (includes the Department) or county in which the Development Site is located. Neighborhood Organizations may request to be on record with the Department for the current Application Round with the Department by submitting documentation (such as
Page 21 of 33
GUARANTY AGREEMENT
THIS GUARANTY AGREEMENT (this “Guaranty”) is made as of the ___ day of
________________, 2015, by STEELE PROPERTIES LLC, a Colorado limited liability
company (“Guarantor”), whose business address is 6795 East Tennessee Avenue, 5th Floor,
Denver, Colorado 80224, in favor of CITY OF GEORGETOWN (“Lender”), whose business
address is __________________________ as it relates to a Term Loan Note (the “Note”) in the
original principal amount of $___________________.00 (the “Loan”) made by Steele
Georgetown LIHTC LLC, a Texas limited liability company (“Borrower”) and payable to
Lender.
1. Purpose and Consideration. Guarantor will benefit from the Note. The execution
and delivery of this Guaranty by Guarantor is a condition to Lender’s willingness to make the
Loan. This Guaranty relates to obligations under the Note only.
2. Guaranty. Guarantor hereby guarantees the full and timely payment of the
amounts due and owing, evidenced by or arising under the Note.
3. Guaranty Is Independent and Absolute. The obligation of Guarantor hereunder is
independent of the obligations of Borrower.
4. Assignability. This Guaranty shall be binding upon Guarantor and Guarantor’s
heirs, representatives, successors, and assigns and shall inure to the benefit of Lender and
Lender’s successors and assigns. Notwithstanding the foregoing, neither party’s rights or
obligation hereunder may be assigned without the consent of the other party.
5. Payment of Costs. In the event of any litigation concerning this Guaranty, the
nonprevailing party will reimburse the prevailing party for all of its costs and reasonable
attorneys’ fees incurred.
6. Notices. Whenever any notice, demand, or request is required or permitted under
this Guaranty, such notice, demand, or request shall be in writing and shall be sent to the
respective addresses of the parties above, with confirmed delivery of receipt. A party may
change its address for notice by providing written notice to the other party in the manner set forth
above.
7. Severability of Provisions. In the event that any part of this Guaranty shall be
held to be invalid or unenforceable by a court of competent jurisdiction, such provision shall be
reformed and enforced to the maximum extent permitted by law. If such provision cannot be
reformed, it shall be severed from this Guaranty and the remaining portions of this Guaranty
shall be valid and enforceable.
8. Applicable Law. This Guaranty and the rights and obligations of the parties
hereunder shall be governed by and interpreted in accordance with the laws of the State of Texas.
All claims, disputes and other matters in question arising out of or relating to this Guaranty, or
the breach thereof, shall be decided by proceedings instituted and litigated in a court of
competent jurisdiction in the State of Texas.
2
IN WITNESS WHEREOF, Guarantor has executed this Guaranty as of the day and year
first above written.
STEELE PROPERTIES LLC, a Colorado limited
liability company
By: __________________________________
Name: __________________________________
Title: __________________________________
TERM LOAN AGREEMENT
City of Georgetown, Texas
Ladies and Gentlemen:
The undersigned, STEELE GEORGETOWN LIHTC LLC, a Texas limited liability company
(the “Borrower”), has concurrently herewith borrowed from the CITY OF GEORGETOWN, TEXAS
(the “Lender”) the sum of _____________________ and No/100 Dollars
($________________.00) (the “ Loan”) as evidenced by that certain Term Loan Note of the
Borrower bearing even date herewith payable to the order of the Lender (the “Note”) in said
principal amount and expressed to mature and to bear interest as set forth in, and otherwise in the
form of, the note attached hereto as Exhibit A in connection with the rehabilitation of an
approximately 54-unit apartment project located in the City of Georgetown, Texas (the
“Project”). The Borrower executes and delivers this Agreement to set forth and confirm the
terms and conditions applicable to the Note and the covenants, agreements, representations and
warranties of the Borrower made in connection therewith:
SECTION 1. PAYMENTS.
Section 1.1. Prepayments. Payments shall be made as set forth in the Note. Any
applications of the money held in the Account (defined in the Bank Agreement, which is defined
below) shall be credited against the balance due on the Note. The Borrower shall have the
privilege of prepaying the Note in whole or in part at any time and from time to time without
penalty. All such prepayments shall be made upon not less than one (1) bank business day’s
prior notice to the Lender. Each prepayment shall be made by the payment of the principal
amount to be prepaid and accrued interest thereon to the date fixed for prepayment.
Section 1.2. Payment of Fees. The Borrower shall pay to the Lender on the date hereof
(the “Closing Date”) an amount equal to 1% of the original principal amount of the Loan (the
“Lender Fees”).
Section 1.3. Place and Application of Payments. The Borrower hereby agrees to make
all payments of the Lender Fees, the principal and interest and all other amounts payable
hereunder and under the Note (collectively, the “Obligations”) promptly when due and such
amounts due to the Lender under the Note shall be paid in accordance with the Note. All such
payments shall be made in lawful money of the United States of America, in immediately
available funds at the place of payment.
SECTION 2. SECURITY.
Section 2.1. Collateral Documents. For the benefit of the Lender, as security for the
payment of the Obligations, including without limitation, all principal of and interest on the
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Note, the Borrower has concurrently herewith executed and delivered that certain Assignment
and Pledge Agreement, dated as of the Closing Date (the “Bank Agreement”), among the
Borrower, the Lender and _________________ (the “Bank”), granting the Lender a lien on and
security interest in the Account to secure the Note.
Section 2.2. Further Assurances. The Borrower covenants and agrees that it shall as
reasonably requested by the Lender, execute and deliver such further instruments and do such
other acts as the Lender may deem reasonably necessary or desirable to provide for or protect or
perfect the lien and security interest of the Lender in the collateral security granted thereby.
SECTION 3. REPRESENTATIONS AND WARRANTIES.
The Borrower represents and warrants to the Lender as follows:
Section 3.1. The Borrower is a limited liability company duly organized, validly
existing, and in good standing under the laws of the State of Texas and is duly licensed or
qualified and in good standing in all jurisdictions wherein the nature of its activities or business
conducted or property owned or leased by it requires such qualification or licensing, including
without limitation, the State of Texas. The Borrower is in full compliance with the terms of this
Agreement and has full right, power, and authority to enter into this Agreement, to borrow the
sum evidenced by the Note, to grant a lien on and security interest in its property pursuant to the
Collateral Documents, and to perform each and all of the matters and things provided for in this
Agreement, the Note, and the Collateral Documents; and the execution and delivery of this
Agreement, the Note, and the Collateral Documents, and the observance and performance of any
of the matters and things herein or therein set forth, will not, to Borrower’s knowledge, violate or
contravene any provision of law or of the organizational documents of the Borrower, or of any
indenture, loan agreement or other agreement of or affecting the Borrower or any of its property.
Section 3.2. There is no litigation or governmental proceeding pending, nor to the
Borrower’s knowledge threatened, against the Borrower which, if adversely determined, would
result in any material adverse change in the financial condition or properties, business or
operations of the Borrower. All tax returns required to be filed by the Borrower in any
jurisdiction have, in fact, been filed, and all taxes, assessments, fees, and other governmental
charges upon the Borrower or upon any of its property, income, or franchises, which are shown
to be due and payable in such returns, have been paid. The Borrower does not know of any
proposed additional tax assessments against it for which adequate provisions in accordance with
generally accepted accounting principles have not been made on its books and records. To
Borrower’s knowledge, no authorization, consent, license, or exemption from, or filing or
registration with, any court or governmental department, agency or instrumentality, is or will be
necessary to the valid execution, delivery or performance by the Borrower of this Agreement, the
Note or the Collateral Documents.
Section 3.3. To Borrower’s knowledge, the Borrower is in compliance in all material
respects with all applicable local, state and federal environmental, health and safety statutes and
regulations.
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Section 3.4. No Event of Default or Default (as defined herein) has occurred and is
continuing.
Section 3.5. The Borrower understands that neither the Lender nor any person
representing the Lender has made any representation to it and assumes no responsibility with
respect to whether the Loan or the Note qualifies the Borrower for the award of certain points by
the Texas Department of Housing and Community Affairs pursuant to its Housing Tax Credit
Program Qualified Allocation Plan and Rules.
SECTION 4. COVENANTS.
From and after the date hereof and so long as any amount remains unpaid on the Note,
except to the extent compliance in any case or cases is waived in writing by the Lender, the
Borrower hereby covenants and agrees with the Lender as follows:
Section 4.1. Maintenance of Business. The Borrower shall preserve and keep in force
and effect all licenses and permits necessary to the proper conduct of its business.
Section 4.2. Maintenance. The Borrower shall maintain, preserve and keep its
properties and equipment in good repair and working order and condition (ordinary wear and
tear and casualty excepted), and shall from time to time make all needful and proper repairs,
renewals, replacements, additions and betterments thereto so that at all times the efficiency
thereof shall be fully preserved and maintained as Borrower deems reasonably necessary.
Section 4.3. Taxes. The Borrower shall duly pay and discharge all taxes, assessments
and governmental charges upon or against the Borrower or against any of its property before the
same become delinquent and before penalties accrue thereon, unless and to the extent that the
same are being contested in good faith by appropriate proceedings.
Section 4.4. Insurance. The Borrower shall insure and keep insured, in good and
responsible insurance companies, all insurable property owned by the Borrower which is of a
character usually insured by companies similarly situated and operating like properties, against
loss or damage from fire and such other hazards or risks as are customarily insured against by
companies similarly situated and operating like property; and the Borrower shall similarly insure
employers’ and public liability risks in good and responsible insurance companies. The
Borrower shall upon request of any Lender furnish a certificate setting forth in summary form
the nature and extent of the insurance maintained by the Borrower pursuant to this Section 4.4.
Section 4.5. Financial Reports. The Borrower shall furnish to the Lender or its
authorized representatives such information respecting the business affairs, operations and
financial condition of the Borrower as may be reasonably requested and without any request
shall furnish to the Lender promptly after knowledge thereof shall have come to the attention of
any responsible officer of the Borrower, written notice of any threatened or pending litigation or
governmental proceeding against the Borrower which would materially adversely affect the
business and properties of the Borrower and/or the occurrence of any Default or Event of
Default.
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SECTION 5. EVENTS OF DEFAULT AND REMEDIES.
Section 5.1. Any one or more of the following shall constitute an “Event of Default”
hereunder:
(a) default in the payment when due (whether by lapse of time, acceleration,
or otherwise) of any principal of or interest on the Note or any fee, charge, obligation or
other amount payable hereunder that is not cured within ten (10) days after receipt of
written notice from the Lender or default in the payment when due of any other
indebtedness or liabilities (whether direct, contingent or otherwise) of the Borrower
owing to the Lender that is not cured within ten (10) days after receipt of written notice
from the Lender;
(b) default in the observance or performance of any of the covenants set forth
in Section 4 hereof or in any of the Collateral Documents which such default is not
remedied within thirty (30) days after written notice to the Borrower by the Lender;
(c) default in the observance or performance of any other provision hereof
which is not remedied within thirty (30) days after written notice thereof to the Borrower
by the Lender;
(d) any representation or warranty made by the Borrower herein, or made by
the Borrower in any statement or certificate furnished by it pursuant hereto, proves untrue
in any material adverse respect as of the date of the issuance or making thereof;
(e) dissolution or termination of existence of the Borrower;
(f) the Borrower becomes insolvent or bankrupt, or bankruptcy,
reorganization, arrangement, insolvency or liquidation proceedings or other proceedings
for relief under any bankruptcy law or laws for the relief of debtors are instituted against
the Borrower and are not dismissed within ninety (90) days after such institution, or a
decree or order of a court having jurisdiction in the premises for the appointment of a
trustee, receiver or custodian for the Borrower, or for the major part of its property is
entered and the trustee, receiver or custodian appointed pursuant to such decree or order
is not discharged within ninety (90) days after such appointment; or
(g) the Borrower shall institute bankruptcy, reorganization, arrangement,
insolvency or liquidation proceedings or other proceedings for relief under any
bankruptcy law or laws for the relief of debtors or shall consent to the institution of such
proceedings against it by others or to the entry of any decree or order adjudging it
bankrupt or insolvent or approving as filed any petition seeking reorganization under any
bankruptcy or similar law or shall apply for or shall consent to the appointment of a
receiver, trustee or custodian for it or for the major part of its property or shall make an
assignment for the benefit of creditors or shall admit in writing its inability to pay its
debts as they mature or shall take any corporate action in contemplation or in furtherance
of any of the foregoing purposes.
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Section 5.2. When any Event of Default described in subsections 5.1(a) to 5.1(f), both
inclusive, has occurred and is continuing after applicable notice and cure periods, the Lender
may, by notice to the Borrower, declare the Obligations, including without limitation, the
principal of and the accrued interest on the Note to be forthwith due and payable, and thereupon
the Note, including both principal and interest, and all fees and charges payable hereunder shall
be and become immediately due and payable without further demand, presentment, protest or
notice of any kind.
Section 5.3. When any Event of Default described in subsection 5.1(g) or 5.1(h) has
occurred and is continuing after applicable notice and cure periods, then the entire principal
balance of the Note and all interest thereon and all fees, charges and the other Obligations
payable hereunder shall immediately become due and payable without presentment, demand,
protest or notice of any kind.
Section 5.4 Notwithstanding anything to the contrary herein contained or inferable from
any provision of this Agreement, the Lender hereby agrees that any cure of an Event of Default
as permitted herein made or tendered by a non-managing member of the Borrower (to the extent
the Event of Default can be cured by the actions of such member of the Borrower) shall be
deemed to be a cure by the Borrower and shall be accepted or rejected on the same basis as if
made by the Borrower.
SECTION 6. DEFINITIONS.
The following terms when used herein shall have the following meanings, such terms to
be equally applicable to both the singular and plural forms of the terms defined:
“Affiliate” shall mean any person, firm, corporation or entity (herein collectively called a
“Person”) directly or indirectly controlling or controlled by, or under direct or indirect common
control with, another Person. A Person shall be deemed to control another Person for the
purposes of this definition if such first Person possesses, directly or indirectly, the power to
direct, or cause the direction of, the management and policies of the second Person, whether
through the ownership of voting securities, common directors, trustees or officers, by contract or
otherwise.
“Collateral Documents” means the Bank Agreement and any security agreements,
assignments, mortgages, deeds of trust, financing statements, guaranties and other documents as
shall from time to time secure the Note and the obligations of the Borrower hereunder.
“Event of Default” shall mean any event or condition identified as such in Section 5.1
hereof after applicable notice and cure periods and the term “Default” shall mean any event or
condition which constitutes an Event of Default.
Capitalized terms defined elsewhere in this Agreement shall, unless otherwise specified,
have the meanings so ascribed to them in all provisions of this Agreement.
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SECTION 7. MISCELLANEOUS.
Section 7.1. Holidays. If any payment hereunder or under the Note becomes due and
payable on a day which is not a bank business day, the due date of such payment shall be
extended to the next succeeding bank business day on which date such payment shall be due and
payable. In the case of any payment of principal falling due on a day which is not a bank
business day, interest on such principal amount shall continue to accrue during such extension at
the rate per annum then in effect, which accrued amount shall be due and payable on the next
scheduled date for the payment of interest.
Section 7.2. No Waiver, Cumulative Remedies. No delay or failure on the part of the
Lender or on the part of the holder of the Note in the exercise of any power or right shall operate
as a waiver thereof or as an acquiescence in any default, nor shall any single or partial exercise
of any power or right preclude any other or further exercise thereof or the exercise of any other
power or right. The rights and remedies hereunder of the Lender and of the holder of the Note
are cumulative to, and not exclusive of, any rights or remedies which any of them would
otherwise have. All of the covenants, warranties and representations of the Borrower herein
shall be in addition to and cumulative of all other covenants, representations and warranties of
the Borrower contained in, or provided for in, any other instrument or document now or hereafter
executed and delivered by the Borrower to or in favor of the Lender.
Section 7.3. Amendments, Etc. No amendment, modification, termination or waiver of
any provision of this Agreement, the Bank Agreement or of the Note nor consent to any
departure by the Borrower therefrom shall in any event be effective unless the same shall be in
writing and signed by the Lender and the Borrower.
Section 7.4. Costs and Expenses. In the event that any party hereto brings an action or
proceeding against any other party to enforce or interpret any of the covenants, conditions,
agreements or provisions of this Agreement, the prevailing party in such action or proceeding
shall be entitled to recover all reasonable costs and expenses of such action or proceeding,
including, without limitation, attorneys’ fees, charges, disbursements and the fees and costs of
expert witnesses.
Section 7.5. Stamp Taxes. The Borrower agrees to pay on demand any documentary,
stamp or similar taxes payable in respect of this Agreement or the Note, including interest and
penalties, in the event any such taxes are assessed, irrespective of when such assessment is made
and whether or not any credit to it is then in use.
Section 7.6. Survival of Representations. All representations and warranties made
herein or in certificates given pursuant hereto shall survive the execution and delivery of this
Agreement and of the Note and shall continue in full force and effect with respect to the date as
of which they were made as long as any credit is in use or available hereunder.
Section 7.7. Payments. The Borrower will promptly and punctually pay the principal of
and interest on the Note without presentment of the Note and without any notation of any such
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payment being made on the Note in accordance with the terms and conditions of the Note and
this Agreement.
Section 7.8. Addresses for Notices. All communications provided for herein shall be in
writing and shall be deemed to have been given or made when served personally or within five
(5) business days when deposited in the United States mail, sent by certified mail, return receipt
requested, addressed to the following addresses or at such other address as shall be designated by
any party hereto in a written notice given to each party pursuant to this Section 7.8:
if to the Borrower:
Steele Georgetown LIHTC LLC
6795 East Tennessee Avenue, 5th Floor
Denver, Colorado 80224
Attn: General Counsel
if to the Lender:
City of Georgetown
________________________
________________________
________________________
Section 7.9. Headings. Section headings used in this Agreement are for convenience of
reference only and are not a part of this Agreement for any other purpose.
Section 7.10. Severability of Provisions. Any provision of this Agreement, the Note
and/or the Collateral Documents, which is unenforceable in any jurisdiction shall, as to such
jurisdiction, be ineffective to the extent of such unenforceability without invalidating the
remaining provisions hereof or affecting the validity or enforceability of such provision in any
other jurisdiction.
Section 7.11. Counterparts. This Agreement may be executed in any number of
counterparts, and by different parties hereto on separate counterparts, and all such counterparts
taken together shall be deemed to constitute one and the same instrument.
Section 7.12. Binding Nature, Governing Law, Etc. This Agreement, the Note and/or the
Collateral Documents, shall be binding upon the parties and their successors and assigns, and
shall inure to the benefit of the parties and their successors and assigns, including any
subsequent holder of the Note. This Agreement and the rights and duties of the parties hereto
shall be construed and determined in accordance with the laws of the State of Texas. This
Agreement constitutes the entire understanding of the parties with respect to the subject matter
hereof and any prior agreements, whether written or oral, with respect thereto are superseded
hereby. The Borrower may not assign its rights hereunder without the written consent of the
Lender. The Borrower and Lender agree that jurisdiction and venue for all claims made under or
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in connection with this Agreement, the Note and the Collateral Documents shall lie exclusively
in Texas.
[Remainder of Page Intentionally Left Blank]
Upon your acceptance hereof in the manner hereinafter set forth, this Term Loan
Agreement shall be a contract between us for the uses and purposes hereinabove set forth.
Dated as of _____________, 2015.
BORROWER:
STEELE GEORGETOWN LIHTC LLC, a Texas
limited liability company
By: STEELE GEORGETOWN LIHTC MM LLC,
a Colorado limited liability company, its
Manager
By: STEELE PROPERTIES HOLDINGS LLC, a
Colorado limited liability company, its
Managing Member
By: _________________________________
Name: ______________________________
Title: ______________________________ r
LENDER:
CITY OF GEORGETOWN
By: ____________________________________
Name: _____________________________
Title: ______________________________
EXHIBIT A
STEELE GEORGETOWN LIHTC LLC
TERM LOAN NOTE
FOR THE
CITY OF GEORGETOWN, TEXAS
$_________________ ______________, 2015
FOR VALUE RECEIVED, STEELE GEORGETOWN LIHTC LLC, a Texas limited liability
company (the “Borrower”), hereby promises to pay to the order of CITY OF GEORGETOWN,
TEXAS (the “Lender”), at its office at ________________________________, Attention:
_________________, or at such other place as the holder hereof may from time to time direct in
writing, the principal sum of ______________________ and No/100 Dollars
($__________________.00) on, if not sooner paid, ____________________, 2030 (the
“Maturity Date”), together with interest on such principal amount at the rates and payable in the
manner and on the dates specified below.
For the first 24 months following the date first above written, the Borrower shall pay
interest only (computed on the basis of a year of 365 or 366 days, as the case may be for the
actual number of days elapsed) at the office described above (or such other place as aforesaid) on
the balance of principal remaining from time to time unpaid hereon at the rate of 3% per annum,
payable monthly on the first business day of each calendar month. From and after the first 24
months following the date first above written, the repayment of the principal balance of the loan
shall be amortized over a period of 40 years, and the Borrower shall pay principal and interest
(computed on the basis of a year of 365 or 366 days, as the case may be for the actual number of
days elapsed) in an amount equal to $________________ per month at the office described
above (or such other place as aforesaid) on the balance of principal remaining from time to time
unpaid hereon at the rate of 3% per annum payable monthly on the first business day of each
calendar month.
The Borrower may prepay any or all of the then unpaid principal at any time without
penalty provided that any accrued and unpaid interest upon such principal shall be paid at the
time of such prepayment. Upon the occurrence of an Event of Default (as defined in the Term
Loan Agreement), such annual rate shall be the lower of the Highest Lawful Rate (as hereinafter
defined) and 10% from the date of such Event of Default until the earlier of the curing of such
Event of Default or the payment in full of all obligations hereunder.
This Note is issued under the terms and provisions of that certain Term Loan Agreement
bearing even date herewith between the Borrower and the Lender (the “Term Loan Agreement”),
and this Note and the holder hereof are entitled to all of the benefits provided for by the Term
Loan Agreement or referred to therein, to which Term Loan Agreement reference is hereby made
for a statement thereof. The principal installments and interest hereon may be declared due prior
to their expressed maturities and voluntary prepayments may be made hereon, all as specified in
[SIGNATURE PAGE TO THE TERM LOAN NOTE]
the Term Loan Agreement. All capitalized terms not defined herein shall have the meaning
ascribed thereto in the Term Loan Agreement.
Payment of this Note is secured by, among other things, (i) that certain Assignment and
Pledge Agreement, dated as of _____________, 2015 among the Borrower, the Lender and
_______________________ and (ii) any other Collateral Document; and this Note and the
holder hereof are entitled to all of the benefits and security afforded by the foregoing collateral
documents, to which reference is hereby made for statement thereof.
This Note shall be governed by, and construed in accordance with, the laws of the State
of Texas.
It is expressly provided and stipulated that notwithstanding any provision of this Note or
any other instrument evidencing or securing the loan evidenced hereby, in no event shall the
aggregate of all interest paid by the Borrower to the Lender under this Note ever exceed the
maximum non-usurious rate allowed to be charged or collected under applicable laws of the
State of Texas and the United States of America (the “Highest Lawful Rate”) on the principal
balance of this Note from time to time advanced and remaining unpaid. In this connection, it is
expressly stipulated and agreed that it is the intent of the Borrower and the Lender in the
execution and delivery of this Note to contract in strict compliance with applicable laws. In
furtherance thereof, none of the terms of this Note or any other instrument evidencing or
securing the loan evidenced hereby, shall ever be construed to create a contract to pay for the
use, forbearance or detention of money, at a rate in excess of the Highest Lawful Rate permitted
to be charged of the Borrower under applicable laws. Borrower or any guarantors, endorsers or
other parties now or hereafter becoming liable for payment of this Note shall never be liable for
interest in excess of the Highest Lawful Rate, and the provision of this paragraph and the
immediately succeeding paragraph shall govern over all other provisions of this Note and any
instruments evidencing or securing the loan evidenced hereby, should such provisions be in
apparent conflict herewith.
[SIGNATURE PAGE TO THE TERM LOAN NOTE]
STEELE GEORGETOWN LIHTC LLC, a Texas
limited liability company
By: STEELE GEORGETOWN LIHTC MM LLC,
a Colorado limited liability company, its
Manager
By: STEELE PROPERTIES HOLDINGS LLC, a
Colorado limited liability company, its
Managing Member
By: _________________________________
Name: ______________________________
Title: ______________________________ r
ASSIGNMENT AND PLEDGE AGREEMENT
This Assignment and Pledge Agreement (the “Agreement”) is executed by STEELE
GEORGETOWN LIHTC LLC, a Texas limited liability company (“Owner” or “Debtor”) this
____ day of ______________, 2015 to secure the payment of that certain
_______________________ and No/100 Dollar ($______________.00) promissory note (the
“Note”) of even date herewith executed by Debtor and payable to the order of CITY OF
GEORGETOWN (“Lender”).
ASSIGNMENT AND PLEDGE
For value received, Debtor hereby assigns and transfers to Lender, and Debtor hereby
gives to Lender a security interest in the following account:
Name of Account: Steele Georgetown LIHTC LLC
Account Number: ____________
Depository Institution: __________________
Collateral Amount: $______________.00
together with any renewals or substitutions of the above described account. This account will be
referred to herein as the “Collateral”. The Collateral is held with __________________. The
Collateral includes all funds now in the Account listed above, plus all additions of any kind and
from any source (the “Account”), made at any time before the release of this Agreement in
writing.
This Agreement is made to secure the payment of the following described debt, plus all
extensions, renewals, modifications and substitutions thereof:
$______________.00 promissory note (the “Note”) of even date
herewith executed by Steele Georgetown LIHTC LLC and payable
to the order of City of Georgetown, a copy of which is attached
hereto as Exhibit “A”.
Debtor and Owner hereby agree to the following terms and conditions:
1. This Agreement will continue in full force and effect until Lender
executes a written release (a copy of which is attached hereto as Exhibit “B”) and Lender
shall not be required to release this Agreement and return the Collateral to Debtor until
the Note and all related obligations of Debtor to Lender are paid in full, at which time
Lender and the Depository Institution promptly shall execute such release.
2. During the term of this Agreement, Owner shall have the right to direct
the Lender to apply all or a portion of the Collateral from the Account for the sole
purpose of applying the Collateral to amounts due and owing to the Lender pursuant to
the Note.
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3. No joint owner, beneficiary, surviving spouse or representative of
Debtor’s estate shall have any rights in the Collateral in the event of Debtor’s death or
dissolution until the Note and all related obligations of Debtor to Lender are paid in full.
4. Collateral in the amount set forth above shall be deposited into the
Account prior to any advances on the Note.
5. If the Note is in default according to its terms after any applicable notice
and cure period, the Lender shall have the unilateral right to withdraw all or any part of
the Collateral and apply the amount so withdrawn toward the payment of the Note and all
related obligations of Debtor to Lender. Lender can exercise this right with notice to
Debtor.
6. During an event of default after any applicable notice and cure periods,
Debtor hereby appoints Lender as Debtor’s attorney in fact to exercise the rights granted
to Lender herein.
7. The rights and remedies granted to Lender herein are in addition to any
rights and/or remedies stated in any other agreements.
8. Debts secured by this Agreement (whether specifically listed or not)
include all sums due under the Note.
9. By signing this Agreement, Debtor accepts the terms of this Agreement
and acknowledges receipt of a copy of this Agreement.
10. In the event that any party hereto brings an action or proceeding against
any other party to enforce or interpret any of the covenants, conditions, agreements or
provisions of this Agreement, the prevailing party in such action or proceeding shall be
entitled to recover all reasonable costs and expenses of such action or proceeding,
including, without limitation, attorneys’ fees, charges, disbursements and the fees and
costs of expert witnesses. This Agreement and the rights and obligations of the parties
hereunder shall be governed by and interpreted in accordance with the laws of the State
of Texas. All claims, disputes and other matters in question arising out of or relating to
this Guaranty, or the breach thereof, shall be decided by proceedings instituted and
litigated in a court of competent jurisdiction in the State of Texas.
Effective as of the date first stated above.
[signatures on following pages]
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DEBTOR/OWNER:
STEELE GEORGETOWN LIHTC LLC, a Texas
limited liability company
By: STEELE GEORGETOWN LIHTC MM
LLC, a Colorado limited liability
company, its Manager
By: STEELE PROPERTIES HOLDINGS LLC, a
Colorado limited liability company, its
Managing Member
By: _________________________________
Name: ______________________________
Title: _______________________________
LENDER:
CITY OF GEORGETOWN
By: ____________________________________
Name: _____________________________
Title: ______________________________
ACKNOWLEDGED AND AGREED:
[INSERT NAME OF DEPOSITORY INSTITUTION]
By: ____________________________________
Name: _____________________________
Title: ______________________________
EXHIBIT “A”
Copy of executed Note
EXHIBIT “B”
The Agreement has been released and the original certificate, or passbook or other
evidence of the Collateral (if any) has been returned to Debtor.
LENDER:
CITY OF GEORGETOWN
By: ____________________________________
Name: _____________________________
Title: ______________________________
ACKNOWLEDGED AND AGREED:
[INSERT NAME OF DEPOSITORY INSTITUTION]
By: ____________________________________
Name: _____________________________
Title: ______________________________
City of Georgetown, Texas
Government and Finance Advisory Board
January 7, 2015
SUBJECT:
Consideration and possible action to approve a loan agreement with HVM 2015 Georgetown, Ltd.
to assist in securing Housing Tax Credits for the renovation of 24 existing affordable units at
Northwest Apartments, located at 1623 Northwest Boulevard.—Jennifer C. Bills, Housing
Coordinator and Laurie Brewer, Assistant City Manager
ITEM SUMMARY:
The owners of the Northwest Apartments will be applying for 9% Housing Tax Credits through
the Texas Department of Housing and Community Affairs (TDHCA). This is a highly competitive
process. As one of the scoring criteria, applicants can earn points by securing financial support
from the local jurisdiction, provided in the form of a grant, in-kind fee waivers, or a loan with a
minimum five-year term with an interest rate no greater than 3%.
HVM 2015 Georgetown Ltd, is requesting a minimum of $12,000 and a maximum of $197,633.
The funding requirements are based on the number of units in the project and the population on the
city. Below is the required amount of funding for each point total.
Points Funds Needed For Points
11 $197,633
10 $131,755
9 $65,878
8 $24,000
7 $12,000
Two additional points can be gained by committing the funding in a resolution by February 27,
2015, which is the application deadline. The details of the loan agreement can be finalized after
that date and any loan would be executed only after the tax credits are awarded.
The applicant has agreed to set up an account to provide cash collateral to fully secure the loan and
minimize the risk to the City.
In addition to the request for contribution, the applicant has also request a Resolution of Support,
which will go to the Housing Advisory Board on January 14 and City Council on January 27. This
requires no financial commitment and it is an application requirement.
FINANCIAL IMPACT:
With the requirement of full cash collateral, the financial impact will be primarily in staff time for
administration.
SUBMITTED BY:
Jennifer C. Bills, Housing Coordinator and Laurie Brewer, Assistant City Manager
ATTACHMENTS:
Description Type
Northwest Background Info Cover Memo
Northwest HVM example Cover Memo
Northwest Past City Participants Cover Memo
Northwest Request for City Support Cover Memo
Northwest TDHCA Qualified Action Plan Requirements Cover Memo
Housing Advisory Board
Northwest Apartments Resolution of Support Page 1 of 3
Meeting Date: January 14, 2015
Item Description
Consideration and possible action to approve a resolution of support for Hamilton
Valley Management to apply for the Housing Tax Credit for the rehabilitation of the
Northwest Apartments, located at 1623 Northwest Boulevard.
Staff Recommended Motion
Forward the resolution of support request to City Council for approval.
Item Details
Project Name: Northwest Apartments
Project Address: 1623 Northwest Boulevard (Exhibit A)
Total Acreage: 1.8 acres
Legal Description: 1.8 acres in the Porter Survey
Applicant: Dennis Hoover, Hamilton Valley Management, Inc.
Property Owner: HVM 2015 Georgetown, Ltd.
Tax Exempt: No
Applicant’s Request
Highland Property Group is requesting a resolution of support from the Georgetown
City Council to apply for the Housing Tax Credit (HTC) program through the Texas
Department of Housing and Community Affairs (TDHCA).
Financing
The applicant is seeking to secure financing through the Low Income Housing Tax
Credit Program to receive 9 % housing tax credits. Projects seeking credits are scored
using the criteria set by TDHCA in this competitive process. This project is a
rehabilitation project that is ensuring the continuation of existing affordable units.
Because of this, they are applying within a special category of Rural Set‐aside, so it
would not compete against other new construction projects. The City of Georgetown,
when compared to other cities of similar size throughout Texas, has two times the
average number of tax credit units. This is not a market measure, but simply a
statistical comparison. Due to the two times rule, any new application within
Georgetown is required to secure a Resolution of Support in order to apply (see Exhibit
G for program information).
Housing Advisory Board Staff Report
Northwest Apartments Resolution of Support Page 2 of 3
Site Information
The existing 24‐unit complex was constructed in 1976 through a United States
Department of Agriculture (USDA) program for rural affordable housing. Since that
date, the site has had one major renovation in 1995.
This renovation will bring the accessible units up to current Americans with Disability
Act standards as well as improve the energy efficiency of the units. Units will be
upgraded with low flow faucets and toilets, additional insulation, new HVAC systems,
ceiling fans and energy efficient light fixtures.
Proximity to other Multifamily and Affordable Developments
Within a one‐mile radius, there are eight existing apartment developments and one
under construction (Gateway Northwest). (Exhibit B)
Development Address Units
Income
Restricted Program
Mariposa at River Bend 121 River Bend Drive 180 Yes
Senior
HTC
Cypress Creek at River Bend 120 River Bend Drive 200 Yes HTC
Westwood Townhomes 200 River Bend Drive 110 No
Shady Oaks 501 Janis Drive 60 Yes
Section
8
Gateway Northwest
1617 Northwest
Boulevard 180 Yes HTC
Cedar Ridge Apartments
1500 Northwest
Boulevard 60 Yes USDA
Georgetown Square 206 Royal Drive 60 Yes
Section
236
Apple Creek 302 Apple Creek Drive 176 No
Parkview Place 2111 N. Austin Avenue 176 No
Affordability
Currently, all of the units are rented to tenants that make less than 50% of Area Median
Income (Exhibit E).
The expected average rental rates are:
1 – 1 bedroom Unit (650 sq. ft.) ‐ $435
23 – 2 Bedroom Units (750 sq. ft.) ‐ $589
Housing Advisory Board Staff Report
Northwest Apartments Resolution of Support Page 3 of 3
Financial Impact to the City
The applicant is requesting a minimum of $12,000 in a city loan to receive at least 7
points on the TDHCA scoring criteria.
Attachments
Exhibit A: Location Map
Exhibit B: Location of Multifamily Developments
Exhibit C: Resolution
Exhibit D: Application Information from Hamilton Valley Management, Inc.
Exhibit E: Income limits by unit
Exhibit F: Apartment site details and ADA features
Exhibit G: TDHCA Housing Tax Credit FAQ
Submitted By
Jennifer C. Bills, AICP, LEED AP, Housing Coordinator
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Exhibit C
Resolution Number: ____________ Page 1 of 1
Description: Northwest Apartments Tax Credit Resolution
Date Approved: 1/28/2014
RESOLUTION NO. __________
A Resolution of the City Council of the City of Georgetown, Texas approving a
Housing Tax Credit Program proposal with Hamilton Valley Management,
Inc., for the development named Northwest Apartments located at 1623
Northwest Boulevard; and declaring an effective date
Whereas, Hamilton Valley Management, Inc. has proposed to acquire and rehabilitate
an existing, 24-unit USDA-subsidized multi-family apartment complex known as
Northwest Apartments 1623 Northwest Boulevard in the City of Georgetown,
Williamson County, to continue to provide for affordable rental housing within the
City;
Whereas, Hamilton Valley Management, Inc. intends to submit a joint application to the
Texas Department of Housing and Community Affairs (TDHCA) for 2014 Housing Tax
Credits Program funds for San Gabriel Apartments;
Whereas, pursuant to §50.8(2)(A), Texas Administrative Code, Hamilton Valley
Management, Inc. acknowledges that the City of Georgetown has more than twice the
state average of units per capita supported by Housing Tax Credits or Private Activity
Bonds;
Be it therefore resolved that:
The City of Georgetown hereby approves of the proposed application for the
rehabilitation of Northwest Apartments and has voted specifically to authorize an
allocation of Housing Tax Credits for this development.
Adopted and approved by the City Council of the City of Georgetown on the 28th day of
January 2014.
ATTEST: THE CITY OF GEORGETOWN:
Jessica Brettle George Garver
City Secretary Mayor
APPROVED AS TO FORM:
Bridget Chapman
Acting City Attorney
Low-Income Housing Tax Credit/HOME
Resolution of Support Request
Application Form
All applications must be submitted with a complete Application Form,a completed application checklist,and all
materials listed in the appropriate checklist.The Housing Coordinator is available to advise you on any
requirements.Please call 512-930-8477 for an appointment to submit your application.Applications may be
submitted at any time.Based on the submission date,the application will be tentatively scheduled for the next
available Housing Advisory Board meeting,which normally occurs on the third Wednesday of each month.
Project Name:Northwest Apartments
roperty n ormation
Property Address:1623 E Northwest Blvd.Georgetown
Leqal Description:see attached
Zoning District:multi family
Requesting support for:
L1HTC JZL HOME Partnership Program D
P I fI
Applicant Information (property owner or authorized agent)Applicant will be used as the City's Official Contact
Name:Dennis Hoover
Address:P.O.Box 190 1209 S.West Street,
City/State/Zip:Burnet,Texas 78611
Work Phone:512-756-6809 ext 212 Cell Phone:8307984273
Email:dennishoover@hamiltonvalley.com
Do you have site control or owner's consent to apply for L1HTC/HOME funding on this site?
Ye000
I fIrt0Properywnernorma Ion
Owner Name(s):HVM 2014 Georgetown,Ltd.
Address:P.O.Box 190/209 S.West
City/State/Zip:Burnet,Texas 78611
Work Phone:512-756-6809 Cell Phone:830 798 4273
Email:dennishoover@hamiltonvalley.com
Applicants Signature:
Printed Name:Dennis Hoover Date:1-1 0-14
By signing this form,the owner of the property authorizes the City of Georgetown to begin proceeding in
accordance with the process for the type of application indicated on page one of this application.The
owner further acknowledges that submission of an application does not in any way obligate the City to
approve the application and that although City staff may make certain recommendations regarding this
application,the decision making authority may not follow that recommendation and may make a final
decision that does not conform to the staff's recommendation
Low-Income Housing Tax Credit/HOME Resolution of Support
Request Checklist
This Checklist is intended to provide the information and data that is necessary to assess the merits of the
project proposal.
Incomplete applications cannot be accepted for review.If all the information noted in the "Items Required for
Submittal"section of this checklist is not provided;the application may not be accepted for processing.
Application Form
Checklist
Letter of Intent,with Detailed Information listed below:
Location Ma of the
Site Development:
List the number of units and different floor lans
List the breakdown of rental rates b unit and income restrictions
Will rental rates chan e over time and how are the determined?
Architectural renderin
Pro osed site la out
How man accessible units are included
What ADA features are included
If the development includes market rate units,do the e nits differ
from the income restricted units in an a?
List the amenities included in individual units as well as those for the
entire site.
o
Describe ener
Background of the development company and management
compan :
Have there been any changes in company names or re-
or anizations?.Q).
How many tax credit and/or HOME projects have you developed
and mana ed.
Low-Income Housing Tax Credit/HOME Partnership 1
Resolution of Support Request Checklist
o
Financial:
List the fundinq sources to be used.k;(
Provide the anticipated breakdown of the development costs.~
Will the site be tax exempt after development?t-\'J I2f'
What is the affordability period requirement for this project?D
i
Provide an analysis of the economic impact to the City (tax ,
increase,utility consumption,sales tax base)
Will this development require extensive capital improvements?D
Provide the TDHCA scoring criteria that you anticipate meeting...1
Please list any additional information or letters that you will be D
requesting from the City or Georgetown Utility Systems.
Low-Income Housing Tax Credit/HOME Partnership 2
Resolution of Support Request Checklist
HVM 2014 GEORGETOWN,LTD.
P.O.BOX 190
BURNET,TX 78611
Jennifer C.Bills,AICP,LEED AP
City of Georgetown
Housing Coordinator
RE:Resolution of Support for Northwest Apartments
1623 E.Northwest Blvd
Dear Ms.Bills:
Thank you for your assistance in getting us to the table for the Resolution for the above property.I have
provided you with a Google map of the property location as well as a site map for your review.
We acquired the property in 1996,as HVM Georgetown,Ltd.HVM 2014 Georgetown,Ltd.will be
acquiring the property as the new entity.It currently has financing from L1HTC as well as USDA-RD,and
will continue with both when we are completed with our current application process.This is a 24 unit
Family property,that has 1,1 bedroom unit at 650 Sq.Feet and 23,2 bedroom units at 750 Sq.Feet.
I have attached a project worksheet for you to see the rental rates by unit and income restrictions.We
do anticipate a rate increase due to increased debt from the current rates to $589.00 for a 2 bedroom
and $435.00 for the 1 bedroom unit after rehab.
I have attached a number of Architectural renderings of the buildings as they are at the present time.
These are from the 1995 rehab and we plan a number of changes to upgrade not only the 2 ADA units to
comply with new ADA rulings,but to make each unit more energy efficient with:
Low flow faucets in kitchens and bathroom sinks,as well as the shower
low flow toilets
insulation
14 SEER HVAC
ceiling fans
light fixtures
Currently there is a common area with a play ground and a free standing laundry building.Some ofthe
units have washer connections in their storage area,but no dryer connections.There is no extra charge
for the units with the connections.We have not completed our scope of work so do not know at this
time if we will be changing this layout or not.We have not ordered our architectural drawings for the
rehab at this time,but will do so once we have a better idea how we will point out with TDHCA.
By doing this rehab we will be able to continue to furnish those in Georgetown with affordable housing
in an updated environment.Keeping the rental income local,with the tenants shopping local,using
local utilities and keeping the current property tax in the area of Georgetown and Williamson County.
I have also attached a resume of Hamilton Valley Management,Inc.to let you know of our long history
with redevelopment,rehabs and management of projects.
At this time we do not know what our total scoring is with TDHCA as they now compute a lot of it once
the pre-application has been completed and turned into them.However your support means a lot to us
not only for the points but also as a part of your community.
I have attached an anticipated budget for the project.
I hope this has helped you to help us get the Resolution of Support from the City Georgetown.Should
you find you need any further information,please feel free to let me know and I will do my best to get it
to you as quickly as possible.
7;:~~
Nan S.Boyles
Development Coordinator
5127566809 ext 207
nboyles@hamiltonvalley.com
HJM
Hamilton valley management,Inc.
COMPANY PROFILE &OPERATING HISTORY
A)GENERAL STATEMENT OF COMPANY QUALIFICATIONS:
Hamilton Valley Management,Inc.,a Texas Corporation,was incorporated November 17,1981.The
company is a family business,owned by BHHH,Inc.,dba The Hoover Companies.John Hoover and
his two sons,Dennis and Danna,manage the company.
Hamilton Valley Management (HVM)is a management agent in the business of developing and
managing multi-family rental properties located in Texas.HVM specializes in managing USDA,
Rural Development Section 515,HUD,HOME and LIHTC multi-family rental properties in rural
towns.HVM currently manages 90 rental properties mostly in the Central and Southern portions of
Texas.The principals of Hamilton Valley Management,Inc.,developed most of these properties and
they own at least the general partnership interest in the Majority of the properties and fee-manage
the remaining.
John Hoover developed his first apartment community for low-income families in 1969.This 45-year
history is evidence of his long-term commitment to affordable housing.
Hamilton Valley Management is a member of the Rural Rental Housing Association of Texas,Austin
Apartment Association,Texas Apartment Association and the National Association of Home Builders.
B)KEY PERSONNEL:.
Dennis Hoover,President:Dennis is a graduate of the University ofT~.~~~~nd has been personally
involved in all phases of the multi-family housing industry for the last t~iJ;ty four years.Dennis is a
Director and past President of the Rural Rental Housing Association of Texas.
Danna Hoover,Vice-President:Danna attended college at Southwest Texas State University and
majored in b~~ill~ss management.Danna has been involved with the multi-family housing industry
for the past tW.elltynine years and has received a Certified Apartment Manager certification from the
National Apartment Association,a Certified Occupancy Specialist certification and a Certified
Manager of Maintenance certification from the Nation Center for Housing Management and a STAR
designation from The Spectrum Companies.Danna is a Director and Past President of the Rural
Rental Housing Association of Texas.
Rowena Guess,Comptroller:Rowena had twenty six years of experience in office management and
accounting before coming to Hamilton Valley Management in 1988.Her experience has been in
public accounting,tax return preparation and cost accounting for manufacturing companies.Since
joining Hamilton Valley Management,Rowena has been responsible for implementing and
Visit us at:www.hamiltonvalley.com
P.O.Box 190.Burnet,Texas 78611 •(512)756-6809.Fax (512)756-9885
E-mail:info@hamiltonvalley.com
maintaining a computerized accounting system for all of the apartment communities that HVM
manages.
Sande Dodd,Senior Property Supervisor:An experienced professional in real estate management
since 1969,Sande has administered management training and procedures for over two thousand
multi-family units for Republic International Bank of New York as designated receiver.Sande was
also Director of Property Management for a national development/management corporation in Texas,
Arizona and North Carolina.She was President and owner of McCormick Realty Service,providing
asset management for banks and private owners.Sande supervised and trained a forty-member
management team that successfully managed a ten million dollar portfolio to a profitable sale for a
bank client.Sande attended Southern Missouri State University and majored in business marketing.
Sande has a Certified Occupancy Specialist certification from the National Center for Housing
Management and a STAR designation from The Spectrum Companies.
C)ADMINISTRATIVE AND OFFICE CAPABILITIES:
Hamilton Valley Management has a home office staff of tvyelltY/oll~full time employees.Financial
and property management accounting and data management is performed via a computer package
designed by AMSI.All accounting,payroll,accounts payable,accounts receivable,etc.,is done on
this program.All tenant tracking,certifications,verifications,etc ...is done using FHA property
management software designed by Simply Computer Systems.We enter each rental payment,move-
in or move-out into our system on a daily basis so that our database stays current.In addition,we
also have software that gives us the capabilities to transmit data to USDA,Rural Development and
HUD.
The on.,.site property manager does the majority of purchases for maintenance supplies.When the
on-site manager makes a purchase,a purchase order is completed and a copy is mailed to the home
office.The Property Supervisors and the Accounts Payable Department verify all invoices for
accuracy and validity prior to payment.
All on-site management personnel are interviewed and screened by a Hamilton Valley Management
property supervisor before they are hired.The on-site manager screens applicants for maintenance
positions,and a property supervisor reviews the manager's selection.Selection of an on-site employee
is contingent on a favorable criminal history search through the Texas Department of Public Safety
and Tenant Tracker.Hamilton Valley Management places a high priority on giving our on-site
personnel the training they need to do their job at the highest level of integrity and competence.
Apartment management is a dynamic industry.New managers are trained one-on-one at the
property by a property supervisor or an experienced property manager from another HVM property.
Managers are kept abreast of new developments and reminded of old rules by "The Red Book"(a
policy and procedures hand book),newsletters,inter-office memos,regional company meetings and
an annual two-day company-wide meeting.Also,most of our property managers attend at least one
educational seminar sponsored by a private company or association each year.
Visit us at:www.hamiltonvalley.com
P.O.Box 190.Burnet,Texas 78611.(512)756-6809 •Fax (512)756-9885
E-mail:info@hamiltonvalley.com
Nan Boyles
From:
Sent:
To:
Dennis Hoover
Friday,January 10,2014 11 :19 AM
Nan Boyles
A
54
ant CostDalavopm s:\partmen s
Site Acquisition Cost $700,823
CONSTRUCTION &contingency $1,145,418
ARCHITECTURAL,3rd PARTY,$142,845
FINANCING,UNDERWRITING,
DEVELOPMENT FEES $379,443
RESERVES $129,649
TOTAL DEVELOPMENT COSTS $2,498,178
1
14 of 171
Report PRJ2000 Multi-Family Information System (MFIS)Date:12/20/2013
PROJECT WORKSHEET Page:10f2
FOR:1210112013
Project Name:NORTHWEST APTS Managemnt Agent:HAMILTON VALLEY MANAGEMENT
Case Number:51-46-683074970-012
Project Sbsy:05 -Plan II (RAJ
Project Note:10 -PASS MONTHLY
Nbr Tnt PCT Adj or RA RA
Apt In Initial Exprtn Basic Nole HUD Sub Of Income Annual Uti Due Due Ovrg/Actn Track
Nbr Tp/Sz Unit Dale Date leased To Rent Rent Rent Code Income Type Income GTC Alw NTC Tnt Brrwr Surch Code Acct
620A N/2 1 7/19/2011 7/31/2014 ZOlONDEK.AMY M 535 685 0 1 30%V 14792 370 116 254 0 281 0
620B N/2 1 5/1/1997 2128/2014 WHITEHEAD.MARY 535 685 0 1 30%V 11800 295 116 179 0 356 0
620C N/2 1 9/1/2000 5/31/2014 CLARKSON,RUBY 535 685 0 1 30%V 12464 312 116 196 0 339 0
620D N/2 0 1211/2013 Vacant 535 685 0 0%0 0 116 0 0 0 0 V
621A N/2 3 2113/2012 2128/2014 ACEVEDO.NORMA ~35 685 0 0 30%V 31318 783 116 667 0 0 132
621B N/2 2 11/1/2012 10/31/2014 SLAUGHTER.DAVID 535 685 0 0 23%l 41534 801 116 685 0 0 150 R
621C N/2 0 1211/2013 Vacant 535 685 0 0%0 0 116 0 0 0 0 V
6210 N/2 4 8/1212010 6/30/2014 GREEN,TAMIKA 535 685 0 1 30%V 17429 436 116 320 0 215 0 T
622A HNI2 2 2115/2013 212812014 MENCHACA,SARA V 535 685 0 0 44%V 17683 651 116 535 0 0 0
622B N/2 2 211/1996 11/30/2014 JEFFERSON,OlENE 535 685 0 1 30%V 9124 228 116 112 0 423 0 R
622C N/2 3 11/29/2012 11/30/2014 TAYLOR,ALAINA 535 685 0 0 30%V 28655 716 116 600/0 0 65 R
622D NI2 2 3/8/2013 3/31/2014 DENNIS,LAWRENCE J 535 685 0 0 41%V 19143 651 116 535 0 0 0
623A N/2 1 8/1/2003 7/31/2014 CARRASCO,OFELIA G 535 685 0 1 30%V 8295 207 116 91 0 444 0
623B N/2 2 7/19/2009 6/30/2014 WOFFORD,EVONE 535 685 0 1 30%V 14872 372 116 256 0 279 0
623C N/2 3 7/30/2013 7/31/2014 DAVIS.IRESHEKIA 535 685 0 0 30%V 30869 772 116 656 0 0 121
623D HN/1 1 8/31/2012 813112014 IRVIN.ROBERT 395 485 0 0 45%V 12884 480 85 395 0 0 0
624A NI2 4 4/26/2011 4/3012014 HARDIN,STACIE 535 685 0 1 30lJ/o V 11900 298 116 182 0 353 0
624B N/2 2 9/1/2007 8/31/2014 MOORE,BARBARA 535 685 0 ·1 30%V 18632 466 116 350 0 185 0
624C N/2 3 9/26/2012 9/30/2014 ORBIN.WilLIAM P 535 685 0 '0.43%V 18227 651 116 535 0 0 0
624D N/2 2 612212012 6/30/2014 SMITH.MONICA 535 685 0'0 46%V 16921 651 116 535 0 0 0
625A N/2 1 1211/1998 12131/2013 MOSEE,JANICE 535 685 0 1 30%V 8226 206 116 90 0 445 0
625B N/2 3 9/9/2010 8/31/2014 WHITE.DANA 535 685 0 1 30%V 19941 499 116 383 0 152 0
625C N/2 2 7/30/2013 7/31/2014 NAVARRO,DAVID 535 685 0 0 39%V 20116 651 116 535 0 0 0
625D N/2 2 4/13/2012 4/30/2014 TACKETT,WilLIAM E 535 685 0 1 30%V 15752 394 116 278 0 257 0
TOTALS:10890 8369 0 3729 468
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WSA ARCHITECTS &.ENGINEERS,BRYAN,TE)(AS
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CONTRACTOR'S NAME,CITY,STATE
RURAL HOUSING SERVICE
UNITED STATES DEPARTMENT OF AGRICULTURE
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.EXISJING LAUN-DR'{DRAWN
CHECKEO
PROJE:CT NUMBER
A 1.5
HANDICAP ACCESSIBILITY REQUIREMENTS
DWELLING UNITS
1.Public areas and'facilities such as entry walks,trash disposal,mail boxes,office,laundry,
and etc.shall be accessible by at least one route.
2.Doors to have minimum 32 8 clearance where passage is required.
3.Thresholds shall not exceed 1/28 in height.Edges over 1/48 high shall be beveled.
4.Door hardware shall have a shape that is easy to grasp and does not require tight grasping,
pinching or twisting (all doors).Peep holes mounted 46"high.
5.Clothes rods shall be maximum of 54"high.Bottom shelf of upper kitchen cabinets shall be
maximum 48"high.
6.Switches and controls shall be maximum 48"high.Outlets shall be minimum 15"high.
7.Audible and visual emergency alarms shall be installed.Switches (on in down position)shall
be located in the bedroom and bathroom.Attach pull string to switch.
8.Bathroom doors shall not swing into the clear floor space (48"x30j required for any fIXture.
9.The water closet shall be 17"-19"high to top of seat.
10.Grab bars shall be installed at the tub and water closet.Grab bars shall be 1-1/4"to 1-1/2"
diameter and be anchored to support a 250 pound load.
11.The lavatory shall be mounted maximum 34"high with minimum clearance of 29".
12.Medicine cabinets shall be mounted so the bottom shelf is maximum 44"high.
13.Bathtubs shall have an in-tub seat,grab bars at ends and back,offset faucet and controls,
and a shower spray unit with a hose at least 60"long that can be fixed or hand held.
14.Controls at sinks,tubs,and lavatories shall be lever controlled.
15.Kitchen counters to be 34"high with bottom shelf of upper cabinets maximum 48"high.
Knee space (minimum 29"high)shall be required at sink and one 30"wide work ar~a.
16.Drain pipes and water lines shall be covered or otherwise protected at sink and lavatory.
17.There shall be no sharp or abrasive surfaces at the knee spaces under the counters.
18.Range shall have front controls so it is not necessary to reach across the burners.
19.The vent hood shall be switched to a location within the 48"reach height.
20.At least one washer (front loading)and one dryer (maximum 48"high controls)shall be
available at laundry rooms unless help is otherwise provided.
21.Add scald guard at tub so maximum water temperature is 110 degrees.
United States
Department of
Agriculture
Rural Economic
and Conununity
Development
101 South Main Suite 102
Temple,Texas 76501
(817)774-1400
July 11,1995
SUbject:Clarification of requirements for making 515
complexes accessible by persons with disabilities.
Requirements for converting conventional bathrooms to
accessible bathrooms.
The Uniform Federal Accessibility Standards require that
there be clear floor space in front of bathroom fixtures.
The Fequired clear floor areas can overlap,but the only
fixture that can encroach on a bathtub clear floor area
is a wall hung lavatory (See figure 33).
The majority of apartment units in the State are burlt
with the water closet adjacent to the bathtub.This is
not allowed in an accessible unit,so relocation of the
water closet is required when converting a unit to ~n
accessible unit.
Requirements for entry door hardware in 515 MFH Itadaptablelt
.units.
The Fair Housing Amendments Act of 1988 requires that the
entry doors of all the ground floor units of a project
SUbject to provisions of the Act,those built for
occupancy after March 13,1991,must be equipped with
lever handles.This includes the 5%of the total units
for persons with disabilities,the Itaccessiblelt units,
and the remainder of the ground floor units,the
"adaptablelt units.Lever handles must be provided
throughout the Itaccessible"units,but only on the entry
doors of the Itadaptable"units.sidewalks to the units
must be made accessible.
For complexes built prior to March 13,1991,the private
walks to individual units (other than the 5%accessible
units),and the entry doors to those units,do not have
to be made accessible.Public sidewalks,those along
streets and parking,must be accessible.
./
Rural Economic and Community Development is an Equal Opportunity Lender.
Complaints of discrimination should be sent to:
Secretary of Agriculture,Washington,D.C.20250
18
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Clear floor Space at Water Closets
1220
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75 min
11105
(b)
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Clear floor Space at Bathtubs
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SYMBOL KEY:
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Ag.32
Clear Roor SplM:~at Lavatories
"sumer infonnation shall be provided in each adaptabLe
dwelling unit available for occupancy:
(1)Notification of the altemate heights available for
the kitchen counter and sink and the existence of
removable cabinets and bases,if provided,under
counters,sinks,and lavatories.
(2)Notification of the provisions for the installation
of grab bars at toilets,bathtubs,and showers.
(3)Notification that the dwelling unit is equipped to
have a visual emergency alann installed..
(4)Identification of the location where infonnation
and instructions are available for changing the height
of counters,removing cabinets and bases,installing a
visual emergency alarm system,and installing grab
bars.
(5)Notification that the dwelling unit has been
designed in accordance with this Uniform Federal
Accessibility Standards..
In addition,the paJt.ies who will be responsibLe for
making adaptations shall be provided with the follow-
ing information:
(1)Instructions for adjusting or replacing kitchen
counter and sink heights and for removing cabinets.
(2)A scale drawing showing methods and locations
for the installation of grab bars.
(3)A scale drawing showing the location of
adjustable or replaceable counter areas and removable
cabinets.
(4)Identification of the location of any equipment
and parts required for adjusting or replacing counter
tops,cabinets,and sinks.
(5)Instructions for installing a visual emergency
alann system,if the dwelling-un"it is equipped for such
an installation
4.34.5·Bathrooms.AccessibLe or adaptable
bathrooms shall be on an accessible route and shall
comply with the requirements of 4.34.5.
4.34.5.1 Doors.Doors shall not swing into the clear
floor space required for any fixture.
4.34.5.2 Water Closets.
~1)Clear floor space at the water closet shall be;]s
shown in Fig.47(a).The water closet may be located
with the clear area at either the right or left side of the
toilet
(2)The height of the water closet shall be at least 15
in (380 mm),and no more than·19 in (485 mm),
measured to the top of the toilet seat
(3)Structural reinforcement or"other provisions that
will allow installation of grab bars shall be provided in
the locations shown in FIg.47(b).If provided,grab
bars shall be installed as shown in FIg.29 and shall
comply with 4.26.
--------~t:I ..........uf....:>
(4)The toilet paper dispenser shall be installed
within reach as shown in Fig.47(b)_
4.34.5.3 LavatOlY.Mirrors.,and Medicine Cabinets.
(1)The lavatol)'and mirrors shall comply with
4.22.6.
(2)If a cabinet is provided under the Iavatol)'in
adaptable bathrooms,then it shall be removable to
provide the clearances specified in 422.6.
(3)If a medicine cabinet is provided above the
lavatol)',then the bottom of the medicine cabinet shall
be located with a usable shelf no higher than 44 in
(1120 mm)above the floor.
4.34.5.4 Bathtubs.If a bathtub is provided,then it
shall have the following features:r (1)Floor space.Clear floor space at bathtubs shal0~as shown in FIg.33.~
(2)Seat An in-tub seat or a seat at the head end of
the tub shall be provided as shown in Fig.33 and 34.
The structural strength of seats an_d their attachments
shall comply with 4.263.Seats shall be mounted
securely and shall not slip during use.
(3)Grab bars.Structural reinforCement or other
provisions that will allow installation of grab bars shall
be provided in the locations shown in Fig.48.1£pro-
vided,grab bars shall be installed as shown in FIg.34
and shall comply with 426.
(4)Controls.Faucets and other controls shall be
located as shown in Fig.34 and shall comply with
427.4.'-
(5)Shower unit A shower spray unit with a hose at
least 60 in (1525 mm)long that can be used as a
fixed shower head or as a hand-held shower shall be
provided.
4.34.5.5 Showers.If a shower is provided,it shall
have the following features:"
(1)Size and clearances.Shower stall size and clear
floor space shal!·comply with either FIg.35(a)or (b).
The shower stali In Fig.35(a)shall be 36 in by 36 in
(915 mm by 915 mm).The shower stall in Fig.35(b)
will fit into the same space as a standard 60 in (1525
mm)long bathtub.
(2)Seat A seat shall be provided in the shower stall
in Fig.35(a)as shown in Fig.36.The seat shall be 17
in to 19 in (430 mm to 485 mm)high measured from
the bathroom floor and shall extend the full depth of
the stall The seat shall be on the wall opposite the
controls.The structurai strength of seats and their
attachments shall comply with 4263.Seats shall be
mounted securely and shall not slip dwing use.
(3)Grab bars.Structural reinforcement or other pro-
visions that will allow installation of grab bars shall be
provided in the locations shown in FIg.49.If provided.
grab bars shall be installed as shown in FIg.37 and
shall comply with 4.26.
51
34
.(b)
.,Hinge SIde Approaches -:-Swinging Doors
Push Side
Push Side
Push Side
r--r:.."':''''':
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NOTE:X =12 In (305 mm)If door has both a
doser and latch.
·~r·,·
NOTE:y =48 In (1220 mm)minimum If door'has
both a latch and closer.
NOTE:y =48 In (1220 mm)minimum If door has
doser.
x·
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Pull Side
Pull Side
Ag.25
Maneuvering Clearances at Doors
•NOTE:x =36 In (915 mm)minimum If y =60 In
(1525 mm);x=42 In (1065 mm)minimum Ify=
54 In (1370 mm).
f'\.....6i &4 YiP"
NOTE:y =54 In (1370 mm)minimum If door has
closer.
(c)"
Latch SIde Approaches -Swinging Doors
NOTE:All doors In alcoves shall comply with the clearances for front approaches.
........................... .
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and Folding Doors
(e)
Slide Side Approach -Sliding Doors
and Folding Doors
x
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610
........................
~
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6
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(f)
latch Side Approach -Sliding Doors and Folding Doors
NOTE:All doors In alcoves shall comply with the clearances for fronl approaches.
Fig.25
Maneuvering Clearances at Doors (ConUnued)
,~min
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35
control
area
24mln
610
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12max
305
2~In
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12 I
305
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WALL 01'f'LYWCt70 RE1NF,'MOWLVE:D
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305
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Past City participation in affordable housing development
Denison Development--San Gabriel Senior Village (100 tax credit senior
units)
On May 10, 2005, City Council approved a 9-month loan for $360,000 for
the on-site construction costs for the new senior apartment complex. The
loan was fully cash collateralized. This earned the developer the maximum
amount of points on their application with TDHCA.
Habitat for Humanity—Old Mill Village (20 Single Family Homes)
In the 2005/06 Management Services budget, the city budgeted
$35,000 to cover water and wastewater impact fees of approximately
6.5 of the 20 lots in the development.
From 2005-2008, the City received $591,529 in Community
Development Block Grants and administered the funds for the
improvement of Leander Street and Railroad Street and drainage in
conjunction with the Old Mill Village project.
Georgetown Housing Authority--Sierra Ridge (177 tax credit, 3 market
rate units)
At the December 11, 2007 the City Council approved:
$779,844 of Utility Connect, Impact, and Parkland Dedication fees.
o When the project did not move forward, the fee waivers were
official rescinded on March 9, 2010.
$690,000 in GTEC funds for the construction of Janis Drive and
Washam (now Fontana) Drive. This was a Performance Agreement,
and when the project did not move forward, the agreement was
nullified. It was officially terminated on November 27, 2012 to
resolve title issues during the development of Gateway Northwest
Apartments.
Texas Housing Foundation—Gateway Northwest Apartments (177 tax
credit, 3 market rate units)
At the February 26, 2013 meeting, City Council approved $100,000 in
permit review and inspection fee waivers. This contribution was
required by the Department of Housing and Urban Development to
approve the issuance of FHA mortgage insurance. The fee waivers
covered approximately 25% of total city permitting and utility fees.
HVM 2015 Georgetown, LTD
To: The City of Georgetown and the General Government and Finance Advisory Board (GGAF)
113 E. 8th Street
Georgetown, Texas 78627
Re: Request for Support for 2015 Housing Tax Credit Application for the Rehabilitation of
Northwest Apartments – HVM 2015 Georgetown, Ltd. (owner)
Greetings,
Hamilton Valley Management (HVM) is the owner and manager of the Northwest Apartments, a
24 –unit, USDA‐Rural Development, multifamily, low to moderate‐income housing complex, located at
1623 E. Northwest Blvd., TX. The property is currently in need of a substantial rehabilitation. A
Rehabilitation of the project would ensure job opportunities, continued operating ability (which means
tax revenue for the city), and most importantly, it will continue to provide safe, sanitary and affordable
housing for families in the Georgetown community for years to come. It is the intention of HVM to
apply to the Texas Department of Housing and Community Affairs (TDHCA) Low Income Housing Tax
Credit Program to assist in the funding of this rehabilitation project. The Tax Credit Program has
become highly competitive especially in the rural communities. In an attempt to promote community
participation, TDHCA has established criteria for points in the application which rely upon various forms
of support for the development from the local governing municipalities. The two most relevant are:
Local Government Support in the form of a resolution voted on and adopted by the Governing Body of
the Jurisdiction, and Commitment of Development Funding by Local Political Subdivision.
Funding provided by the Local Political Subdivision (LPS) or Municipality is not intended to be a
primary source of financing for the project. The LPS funding provided is only intended to be a token of
support—contributing only a fraction of the total development cost. Points earned on the Application
under this criteria item can virtually guarantee the award of 9% Housing Tax Credits. It is for this reason,
that community support from the City of Georgetown is so vital to the success of this project.
Supportive funding can be provided in the form of a construction‐interim loan and/or permanent loan, a
grant, an in‐kind contribution (permit or impact fee waivers), a contribution which will support the
Development, such as vouchers, or combinations thereof.
An application was submitted for the 2014 round for Tax Credits and we had received the full
support from the City Council of Georgetown (letter and resolution). However, the application was
disqualified do to a typing error of a Government Code listed in the Resolution. We are trying again this
year because we were so close to obtaining the approval last year however, there is more competition
this year and so we will need some sort of LPS funding to receive the points required to obtain an award
of Tax Credits. I would be happy to send additional information on how the funding is calculated, and
how much is needed to reach the full points available.
Upon award of a Housing Tax Credit allocation, and obtaining readiness to proceed from all
governing agencies, construction activities would commence, resulting in a 9 to 10 month rehabilitation
of the complex. The construction activities will include the replacement of all appliances, cabinets,
flooring, electrical and plumbing fixtures, HVAC, roofing, insulation, siding, landscaping and accessibility
features. The new installments will be energy efficient. In accordance with Section 504 of the
Rehabilitation Act of 1973, 5% of the units will be structurally modified to be handicapped accessible,
and 2% of the units will be modified to support the need of the vision and /or hearing impaired. The
project site will also receive newly paved parking, new playground equipment, picnic areas and an office
with a community facility. The improved site will add aesthetic value to the surrounding neighborhood,
which in turn promotes community growth and improves the overall quality of life for affected families
in the area, including students of Georgetown ISD and employees of the surrounding community.
It is my pleasure to present the City of Georgetown the opportunity to play a vital role in
accomplishing a great service to the community. I look forward to an opportunity to work with you and
hope to hear from you soon regarding this matter.
Respectfully,
Kim Youngquist
Development Coordinator
KYoungquist@hamiltonvalley.com
(512) 756‐6809 ext. 218
Background on the TDHCA Qualified Action Plan requirements.
For the Housing Tax Credit program administered by the Texas Department of Housing and
Community Affairs (TDHCA), the application process is governed by a Qualified Allocation
Plan (QAP) that provides the rules and scoring criteria for applicants. This QAP is updated
yearly.
In the 2015 QAP a project that receive funding from the local jurisdiction, in the form of a loan,
grant or in‐kind contribution, such as fee waivers can receive between 7 and 14 points. The total
number of points that can be gain is 14. The amount of funding that must be provided is
calculated using the total number of units in the project and the population of the local
jurisdiction.
These funding amounts can be provided in the form of a grant, in‐kind fee waivers, or a loan
with a minimum five‐year term with an interest rate no greater than 3%.
The project can receive two points if the funding is secured by resolution before the March 1,
2015 application deadline. One extra point can be gained if the funds are a grant or a loan with
a 15 year term with a maximum 3% interest rate.
Housing Tax Credit Qualified Allocation Plan 2015
(iii) eight and one-half (8.5) points for a resolution from the Governing Body of that county expressly setting forth that the county supports the Application or Development; or (iv) seven (7) points for a resolution from the Governing Body of that county expressly setting forth that the county has no objection to the Application or Development. (C) Within a county and not within a municipality or the extraterritorial jurisdiction of a municipality: (i) seventeen (17) points for a resolution from the Governing Body of that county expressly setting forth that the county supports the Application or Development; or (ii) fourteen (14) points for a resolution from the Governing Body of that county expressly setting forth that the county has no objection to the Application or Development. (2) Commitment of Development Funding by Local Political Subdivision. (§2306.6710(b)(1)(E)) An Application may receive up to fourteen (14) points for a commitment of Development funding from the city (if located in a city) or county in which the Development Site is located. Development funding from instrumentalities of a city or county will not qualify for points under this scoring item unless such instrumentalities first award the funds to the city or county for their administration, at least 60 percent of the governing board of the instrumentality consists of city council members from the city in which the Development Site is located (if located in a city) or county commissioners from the county in which the Development Site is located, or 100 percent of the governing board of the instrumentality is appointed by the elected officials of the city in which the Development Site is located (if located within a city) or county in which the Development Site is located. The government instrumentality providing Development funding under this scoring item may not be a Related Party to the Applicant. Development funding must be provided in the form of a construction and/or permanent loan with an interest rate no higher than 3 percent per annum and term of at least 5 years, a grant, an in-kind contribution, a contribution which will support the Development, such as vouchers, or combination thereof. Funds cannot have been provided to the Local Political Subdivision by the Applicant or a Related Party. Should the Local Political Subdivision borrow funds in order to commit funding to the Development, the Applicant or a Related Party to the Applicant can provide collateral or guarantees for the loan only to the Local Political Subdivision. HOME Investment Partnership Program or Community Development Block Grant funds administered by the State of Texas cannot be utilized for points under this scoring item except where the city, county, or instrumentality is an actual applicant for and subrecipient of such funds for use in providing financial support to the proposed Development. The Applicant must provide evidence in the Application that an application or request for the development funds has been submitted in the form of an acknowledgement from the applicable city or county. The acknowledgement must also state that a final decision with regard to the awards of such funding is expected to occur no later than September 1. A firm commitment of funds is required by Commitment or points will be lost (except for Applicants electing the point under subparagraph (C) of this paragraph). While the specific source can change, the funding secured must have been eligible at the time the Application was submitted. (A) Option for Development Sites located in the ETJ of a municipality. For an Application with a Development Site located in the ETJ of a municipality, whether located in an unincorporated Place or not, the Applicant may seek Development funding from the municipality or a qualifying instrumentality of the municipality, provided the Applicant uses the population of said municipality as the basis for determining the Application's eligible points under subparagraph (B) of this paragraph. Applicants are encouraged to contact Department staff where an Applicant is uncertain of how to determine the correct Development funding amounts or qualifying Local Political Subdivisions.
Page 20 of 33
Housing Tax Credit Qualified Allocation Plan 2015
(B) Applications will qualify for points based on the amount of funds at the levels described in clauses (i) - (v) of this subparagraph. For the purpose of this calculation, the Department will use the population of the Place from which the Development Site's Rural or Urban Area designation is derived. (i) eleven (11) points for a commitment by a Local Political Subdivision of the lesser of the population of the Place multiplied by a factor of 0.15 in funding per Low Income Unit or $15,000 in funding per Low Income Unit; (ii) ten (10) points for a commitment by a Local Political Subdivision of the lesser of the population of the Place multiplied by a factor of 0.10 in funding per Low Income Unit or $10,000 in funding per Low Income Unit; (iii) nine (9) points for a commitment by a Local Political Subdivision of the lesser of population of the Place multiplied by a factor of 0.05 in funding per Low Income Unit or $5,000 in funding per Low Income Unit; (iv) eight (8) points for a commitment by a Local Political Subdivision of the lesser of the population of the Place multiplied by a factor of 0.025 in funding per Low Income Unit or $1,000 in funding per Low Income Unit; or (v) seven (7) points for a commitment by a Local Political Subdivision of the lesser of the population of the Place multiplied by a factor of 0.01 in funding per Low Income Unit or $500 in funding per Low Income Unit. (C) Two (2) points may be added to the points in subparagraph (B)(i) - (v) of this paragraph and subparagraph (D) of this paragraph if the Applicant provides a firm commitment for funds in the form of a resolution from the Local Political Subdivision and provides a commitment for the same source(s) at Commitment. The resolution must reflect terms that are consistent with the requirements of this paragraph. (D) One (1) point may be added to the points in subparagraph (B)(i) - (v) of this paragraph and subparagraph (C) of this paragraph if the financing to be provided is in the form of a grant or in-kind contribution meeting the requirements of this paragraph or a permanent loan with a minimum term of fifteen (15) years, minimum amortization period of thirty (30) years, and interest rate no higher than 3 percent per annum. An Applicant must certify that they intend to maintain the Development funding for the full term of the funding, barring unanticipated events. For Applicants electing this additional point that have not yet received an award or commitment, the structure of the funds will be reviewed at Commitment for compliance with this provision. (3) Declared Disaster Area. (§2306.6710(b)(1)) An Application may receive ten (10) points if at the time of Application submission or at any time within the two-year period preceding the date of submission, the Development Site is located in an area declared to be a disaster area under the Texas Government Code, §418.014. (4) Quantifiable Community Participation. (§2306.6710(b)(1)(B); §2306.6725(a)(2)) An Application may qualify for up to nine (9) points for written statements from a Neighborhood Organization. In order for the statement to qualify for review, the Neighborhood Organization must have been in existence prior to the Pre-Application Final Delivery Date, and its boundaries must contain the Development Site. In addition, the Neighborhood Organization must be on record with the state (includes the Department) or county in which the Development Site is located. Neighborhood Organizations may request to be on record with the Department for the current Application Round with the Department by submitting documentation (such as
Page 21 of 33
City of Georgetown, Texas
Government and Finance Advisory Board
January 7, 2015
SUBJECT:
Discussion regarding the use of Direct Payment Sales Tax Permits as Economic Development
Tools - Christopher Foster, Manager of Resource Planning and Integration and Mark Thomas,
Economic Development Director
ITEM SUMMARY:
The Texas Administrative Code allows for businesses of significant size to apply to be a Direct
Payment Permit Holder. Owners of these permits are allowed buy their raw materials without
paying sales tax at the register, and then self asses the taxes based on the community in which they
use the items in. If the City had a large enough developer to qualify, they could negotiate Chapter
380 agreements regarding the 1% sales tax receipts generated for the General Fund as an economic
development tool.
FINANCIAL IMPACT:
None
SUBMITTED BY:
Christopher Foster, Manager of Resource Planning and Integration and Mark Thomas, Economic
Development Director
ATTACHMENTS:
Description Type
Texas Administrative Code explain the Direct Payment Permit Cover Memo
Direct Pay Permits Powerpoint Cover Memo
<<Prev Rule Texas Administrative Code Next Rule>>
TITLE 34 PUBLIC FINANCE
PART 1 COMPTROLLER OF PUBLIC ACCOUNTS
CHAPTER 3 TAX ADMINISTRATION
SUBCHAPTER O STATE AND LOCAL SALES AND USE TAXES
RULE §3.288 Direct Payment Procedures and Qualifications
(a) Qualified consumers may give a direct payment blanket exemption certificate in lieu of the taxes
imposed by the Tax Code, Chapter 151, for taxable items which they purchase for their own use and
which items will not be resold in any manner.
(b) All applicants for a direct payment permit must comply with the following conditions,
prerequisites, and qualifications.
(1) The applicant must be annually purchasing at least $800,000 worth of taxable items for the
person's own use and not for resale. A statement to this effect must be submitted to the comptroller.
Adequate records must be available to support this statement. The statement must accompany the
application for a direct payment permit.
(2) The applicant must be able to establish to the satisfaction of the comptroller that the applicant is
a responsible person and that the applicant's accounting methods clearly distinguish between taxable
and nontaxable purchases. A clear statement of the accounting method intended to be used must
accompany the application for a direct payment permit.
(3) The applicant must agree to accrue and pay all taxes imposed by the Tax Code, §151.101, on the
direct payment return for items not specifically exempted and to make the payments to the state on or
before the 20th day of the month following each monthly period in which the items become subject
to the tax by reason of use or consumption in this state. A written agreement to this effect must be
furnished to the comptroller, and it must be signed and returned along with the application for a
direct payment permit.
(4) The applicant must agree to give a resale certificate (as opposed to a direct payment exemption
certificate) for any taxable item that will be resold as provided by the Tax Code, §151.054 or
§151.104.
(c) Applicants for a direct payment permit should write to the Comptroller of Public Accounts of the
State of Texas, Austin, Texas 78774, requesting that an application be forwarded to them.
(d) Any consumer whose direct payment permit is either voluntarily forfeited or canceled by action
of the comptroller's office must immediately notify all vendors from whom purchases of taxable
items are made advising them that the exemption certificate issued to them pursuant to the direct
payment permit is no longer valid. Failure to give notification is a violation of the Limited Sales,
Excise, and Use Tax Act.
(e) A direct payment permit is issued to a legal entity, including all branches and divisions
purchasing taxable items. A direct payment exemption certificate issued to a supplier by one branch
or division applies to purchases made by all branches or divisions from the same supplier. Direct
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payment permit holders may not authorize any other person or firm to purchase any taxable items
under their permit. Use by other persons may result in revocation of the permit.
(f) Direct payment exemption certificates may be issued to contractors performing separated
contracts. The contractor, in this instance, will purchase the taxable items for resale and accept the
direct payment exemption certificate in lieu of charging tax. The contractor may not accept a direct
payment exemption certificate in lieu of paying tax on consumables or equipment. In addition, under
no circumstances should a direct payment exemption certificate be issued to a contractor performing
a lump-sum contract. Direct payment permit holders persisting in this practice may have their
permits revoked. For a discussion of lump-sum and separated contracts, see §3.291 of this title
(relating to Contractors).
(g) Direct payment permit holders may not issue direct payment exemption certificates to persons
providing nontaxable services.
(h) When a direct payment permit holder is doing business with a person who may be selling taxable
items as well as nontaxable services, the direct payment exemption certificate must indicate that it
does not cover any nontaxable services that the servicer may provide.
(i) If storage facilities contain taxable items purchased under a direct payment exemption certificate
and at the time of storage it is not known whether the taxable items will be used in Texas, then the
taxpayer may elect to report the use tax either when the taxable items are first stored in Texas or are
first removed from inventory for use in Texas, as long as use tax is reported in a consistent manner.
Use tax is not applicable to purchases of taxable items that are to be transported outside Texas for
use solely outside Texas or on purchases of taxable items that are to be processed, fabricated, or
manufactured into other property or attached or incorporated into other property and then transported
outside Texas for use solely outside Texas. See §3.325 of this title (relating to Refunds and Payments
under Protest) and §3.338 of this title (relating to Allowance of Credit for Tax Paid to Suppliers) for
refund and credit provisions. See also §3.346 of this title (relating to Use Tax).
(j) All direct payment permit holders must file direct payment returns, whether or not they have tax
to report. If the permit holder has no city, MTA/CTD, or county tax to report, a zero return must be
filed. A direct payment permit will be canceled when annual purchases are less than the amount
required. See §3.377 of this title (relating to Divergent Use of a Direct Payment, Resale, or
Exemption Certificate) and §3.427 of this title (relating to Divergent Use of a Direct Payment,
Resale, or Exemption Certificate).
(k) A blanket exemption certificate described in this section may be given by qualified consumers in
lieu of the tax upon purchases from their suppliers. Each exemption certificate must be accompanied
by a direct payment permit number.
Attached Graphic (l) The holder of a direct payment permit may not make an occasional sale of
taxable items under the Tax Code, §151.304(b)(1). See §3.316 of this title (relating to Occasional
Sales).
Source Note: The provisions of this §3.288 adopted to be effective January 1, 1976; amended to be
effective May 25, 1979, 4 TexReg 1721; amended to be effective February 13, 1984, 9 TexReg 581;
amended to be effective November 5, 1984, 9 TexReg 5929; amended to be effective August 25,
1988, 13 TexReg 3990; amended to be effective September 6, 1990, 15 TexReg 4902.
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1/2/2015
1
Direct Pay Permits
As an Economic Development
Tool
What the Permit is
• Allows the holder to be exempt from taxes
at the register and instead pay them when
self assessed in the community in which
the materials are used
• Tax shifting, sometimes avoidance
• Requires special accounting and auditing
burdens to be carried by the permit holder
1/2/2015
2
Who Owns Them?
•http://aixtcp.cpa.state.tx.us/dirpaweb.html
• Summarized as:
– Oil companies (and Gas)
– Power Companies
– Large infrastructure developers (pipelines)
Why?
• For most holders they negotiate with the
local communities for 380 agreements, or
they use the materials in places that do
not have the full 2% tax rates.
• These companies save significant
amounts because they operate in the
millions (or billions) of material costs.
1/2/2015
3
Georgetown
• We don’t have an oil company knocking
on the door.
• We might have some builders reach a
threshold where they qualify for the permit
– $800,000 in taxable materials is the threshold
(adopted in 1976)
– Every $800,000 per year redirected to
Georgetown could be an additional $8,000
per year that would be used in a 380
agreement.
Guidance Discussion
City of Georgetown, Texas
Government and Finance Advisory Board
January 7, 2015
SUBJECT:
Consideration and possible action to approve the board bylaws in accordance with the revised
Code of Ordinances – Micki Rundell, CFO and Danella Elliott, Staff Liaison
ITEM SUMMARY:
The City Council revised the Code of Ordinances Chapter 2.52 regarding the General Government
and Finance Advisory Board on November 11, 2014. The Board Bylaws are being amended to
conform with the revisions made to Chapter 2.52 and are submitted to the Board for review at this
time. The Bylaws will be submitted to the City Council for review and approval in February 2015.
FINANCIAL IMPACT:
N/A
SUBMITTED BY:
Micki Rundell, CFO and Danella Elliott, Staff Liaison
ATTACHMENTS:
Description Type
Ordinance 2014-92 Cover Memo
GGAF Bylaws Cover Memo
General Government and Finance Advisory Board Bylaws
Revised February 2015
Page 1 of 6
CITY OF GEORGETOWN
GENERAL GOVERNMENT AND FINANCE ADVISORY BOARD
BYLAWS
ARTICLE I. NAME AND PURPOSE
Section 1.1. Name. General Government and Finance Advisory Board (“Board”).
Section 1.2. Purpose. It is the purpose and intent of the Council to create an advisory
board empowered to review and analyze the general government and finance activities
of the City that include but are not limited to the following areas: Finance
administration, including fiscal matters, debt and treasury management; accounting
and financial reporting; purchasing; the Municipal Court; facilities maintenance
including construction and renovation of City facilities; vehicle services; information
technology; compensation and benefits; City insurance; and other related items as
recommend by the City Manager, and to report, by official vote, their recommendations
to the City Council.
ARTICLE II. MEMBERSHIP
Section 2.1. Number of Members. The Board will be comprised of five (5) Members.
Section 2.2. Eligibility. All Members shall reside in the corporate City limits or the
extraterritorial jurisdiction of the City. Three Members shall be Members of the City
Council.
Section 2.3. Appointment of Board Members. Members of the Board shall be
appointed pursuant to and in accordance with the City Charter.
Section 2.4. Terms of Office. Generally, terms of office for each Member shall be two
(2) years. Generally, a Member may serve two (2) consecutive terms. Refer to Ordinance
Section 2.36.030A for additional provisions regarding terms of office.
Section 2.5. Vacancies. Vacancies that occur during a term shall be filled as soon as
reasonably possible and in the same manner as an appointment in accordance with the
City Charter. If possible, the Member shall continue to serve until the vacancy is filled.
An appointment to fill a vacated term is not included as a term for purposes of counting
consecutive terms.
General Government and Finance Advisory Board Bylaws
Revised February 2015
Page 2 of 6
Section 2.6. Compensation and Expenditure of Funds. Members serve without
compensation. The Board and its Members have no authority to expend funds or to
incur or make an obligation on behalf of the City unless authorized and approved by
the City Council. Members may be reimbursed for expenses authorized and approved
by the City Council and the Board.
Section 2.7. Compliance with City Policy. Members will comply with City
Ordinances, Rules and Policies applicable to the Board and the Members, including but
not limited to Ethics Ordinance Chapter 2.20 and City Commissions, Committees and Boards
Ordinance Chapter 2.36.
Section 2.8. Removal. Any Member may be removed from their position on the Board
for any reason, or for no reason, by a majority vote of the City Council.
ARTICLE III. BOARD OFFICERS
Section 3.1. Officers. The Board Officers are Chairman, Vice-Chairman and Secretary.
The Chairman is appointed by the City Council during the annual appointment process.
The other Board Officers are elected by a majority vote of the Members at the first
meeting after the annual appointment process.
Section 3.2. Terms of Office for Board Officers. Board Officers serve for a term of
one year. In the event of vacancy in the office of Chairman, the Vice-Chairman shall
serve as Chairman until the City Council appoints a replacement Chairman. A vacancy
in the other offices shall be elected by majority vote of the Members at the next
regularly scheduled meeting, or as soon as reasonably practical for the unexpired term.
If possible, a Board Officer shall continue to serve until the vacancy is filled.
Section 3.3. Duties.
a. The Chairman presides at Board meetings. The Chairman shall generally manage
the business of the Board. The Chairman shall perform the duties delegated to the
Chairman by the Board.
b. The Vice-Chairman shall perform the duties delegated to the Vice-Chairman by the
Board. The Vice-Chairman presides at Board meetings in the Chairman’s absence.
The Vice-Chairman shall perform the duties of the Chairman in the Chairman’s
absence or disability.
General Government and Finance Advisory Board Bylaws
Revised February 2015
Page 3 of 6
c. The Secretary shall perform the duties delegated to the Secretary by the Board.
ARTICLE IV. MEETINGS
Section 4.1. Time and Date of Regular Meeting. The Board shall meet once a month
on the same week of the month, the same day of the week, at the same time, and at the
same place. The regular date, time and place of the Board meeting will be decided by
the Members at the first meeting of the Board after the annual appointment process.
Section 4.2. Agenda. Items may be placed on the agenda by the Chairman, the City
Manager or designee, or at the request of a Member. The party (or individual)
requesting the agenda item will be responsible for preparing an agenda item cover
sheet and for the initial presentation at the meeting. Items included on the agenda must
be submitted to the Staff Liaison no later than one week before the Board meeting at
which the agenda item will be considered. Agenda packets for regular meetings will be
provided to the Members in advance of the scheduled Board meeting. Agenda packets
will contain the posted agenda, agenda item cover sheets, and written minutes of the
last meeting.
Section 4.3. Special Meetings. Special meetings may be called by the Chairman or by
three (3) Members.
Section 4.4. Quorum. A quorum shall consist of a majority of the Members. A
quorum is required for the Board to convene a meeting and to conduct business at a
meeting.
Section 4.5. Call to Order. Board meetings will be called to order by the Chairman or,
if absent, by the Vice-Chairman. In the absence of both the Chairman and Vice-
Chairman, the meeting shall be called to order by the Secretary, and a temporary
Chairman shall be elected to preside over the meeting.
Section 4.6. Conduct of Meeting. Board meetings will be conducted in accordance
with these Bylaws and City Council Meeting Rules and Procedures, as applicable to the
Board. See Ordinance Chapter 2.24.
Section 4.7. Voting. Each Member shall vote on all agenda items, except on matters
involving a conflict of interest, substantial financial interest or substantial economic
interest under state law, the City’s Ethics Ordinance, or other applicable Laws, Rules
and Policies. In such instances the Member shall make the required disclosures and
General Government and Finance Advisory Board Bylaws
Revised February 2015
Page 4 of 6
shall refrain from participating in both the discussion and vote on the matter. The
Member may remain at the dais or leave the dais, at the Member’s option, while the
matter is being considered and voted on by the other Board Members. Unless
otherwise provided by law, if a quorum is present, an agenda item must be approved
by a majority of the Board Members present at the meeting.
Section 4.8. Minutes. A recording or written minutes shall be made of all open
sessions of Board meetings. The Staff Liaison is the custodian of all Board records and
documents.
Section 4.9. Attendance. Members are required to attend Board meetings prepared to
discuss the issues on the agenda. A Member shall notify the Chairman and the Staff
Liaison if the Member is unable to attend a meeting. Excessive absenteeism will be
subject to action under Council policy and may result in the Member being replaced on
the Board. See Ordinance Section 2.36.010D. Excessive absenteeism means failure to
attend at least 75% of regularly scheduled meetings, including Board meetings and
Subcommittee meetings. If a Member is removed from the Board that position shall be
considered vacant and a new Member shall be appointed to the Board in accordance
with Section 2.5 above.
Section 4.10. Public Participation. In accordance with City policy, the public is
welcome and invited to attend Board meetings and to speak on any item on the agenda.
A person wishing to address the Board must sign up to speak in accordance with the
policy of the Council concerning participation and general public comment at public
meetings. Sign-up sheets will be available and should be submitted to the Chairman
prior to the start of the meeting. If any written materials are to be provided to the
Board, a copy shall also be provided to the Staff Liaison for inclusion in the minutes of
the meeting. Speakers shall be allowed a maximum of three minutes to speak, but may
take up to six minutes if another individual who signs up to speak yields the time to the
speaker. If a person wishes to speak on an issue that is not posted on the agenda, they
must file a written request with the Staff Liaison no later than one week before the
scheduled meeting. The written request must state the specific topic to be addressed
and include sufficient information to inform the Board and the public. A person who
disrupts the meeting may be asked to leave and be removed.
Section 4.11. Open Meetings. Public notice of Board meetings shall be provided in
accordance with the provisions of the Texas Open Meetings Act. All Board meetings
and deliberations shall be open to the public, except for properly noticed closed session
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Revised February 2015
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matters, and shall be conducted in accordance with the provisions of the Texas Open
Meetings Act.
Section 4.12. Closed Sessions. The Board may conduct closed sessions as allowed by
law, on properly noticed closed session matters, such as consultation with attorney on
legal matters, deliberation regarding the value of real property, competitive utility
matters, and economic development negotiations. A recording or certified agenda shall
be made of all closed sessions of Board meetings.
ARTICLE V. REPORTS TO CITY COUNCIL
The Board shall meet with City Council, as requested, to determine how the Board may
best serve and assist City Council. City Council shall hear reports from the Board at
regularly scheduled Council meetings.
ARTICLE VI. SUBCOMMITTEES
Section 6.1. Formation. When deemed necessary by a majority of the Board,
Subcommittees may be formed for specific projects related to Board matters.
Subcommittees comprised of non-Members may only be formed with the prior consent
and confirmation of the City Council.
Section 6.2. Expenditure of Funds. No Subcommittee, or member of a Subcommittee,
has the authority to expend funds or incur an obligation on behalf of the City or the
Board. Subcommittee expenses may be reimbursed if authorized and approved by the
Board or by City Council.
Section 6.3. Open Meetings. Subcommittee meetings and deliberations shall be open
to the public, except for properly noticed closed session matters, and shall be conducted
in accordance with the provisions of the Texas Open Meetings Act.
ARTICLE VII. BYLAW AMENDMENTS
These Bylaws may be amended by majority vote of the Board Members at any regular
meeting of the Board. The Board’s proposed amendments to the Bylaws must be
approved by City Council at the next Council meeting after the Board’s approval.
Bylaw amendments are not effective until approved by City Council.
General Government and Finance Advisory Board Bylaws
Revised February 2015
Page 6 of 6
Approved and adopted at a meeting of the City Council on the _____ day of
____________________, 2015.
ATTEST: THE CITY OF GEORGETOWN
_____ _____
City Secretary Mayor
Approved and adopted at a meeting of the Board on the ______ day of
_________________, 2015.
ATTEST: BOARD
_____ _____
Board Secretary Board Chairman